Why is crypto crashing today? Bitcoin price (BTC USD), Ethereum, XRP, Solana and Avalanche fall as market loses $900 billion in 22 days

Crypto crashing as Bitcoin BTC USD price falls today: The cryptocurrency market is facing a sharp and widespread sell-off, leaving investors asking why prices are falling so quickly. The total value of the crypto market has dropped to around $2.31–$2.43 trillion, a level last seen in April 2025, as selling pressure builds across Bitcoin, Ethereum, and major altcoins.

Why Is Crypto Crashing Today: Crypto Market Loses Over $900 Billion in Just 22 Days

The decline has been fast and severe. In just 22 days, the market has lost more than $900 billion, showing how quickly sentiment has shifted away from risk, as per a Coinpedia report.

Bitcoin Price (BTC USD) Crash Today and Ethereum Leads the Sharp Crypto Sell-Off

Bitcoin has led the downturn, sliding toward the $70,000–$71,000 range after falling more than 6% in a single session. From recent highs near $90,000, Bitcoin is now down about 23%. Ethereum has seen even heavier losses, dropping nearly 32% from around $3,050 to near $2,070 and breaking below key support levels.


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Crypto Market Today: Liquidations Surge as Leveraged Positions Get Wiped Out

As prices fell, leveraged traders were hit hard. More than $320 million in long positions were liquidated in less than 24 hours, while total wiped-out leveraged positions exceeded $755 million, as per a Coingape report. Across the market, losses crossed $833 million as forced selling accelerated the decline.

US Spot Bitcoin (BTC USD) and Ethereum ETF Outflows Add Pressure

Selling pressure intensified as investors pulled money out of US spot crypto ETFs. On February 4, spot Bitcoin ETFs recorded net outflows of more than $545 million. BlackRock’s IBIT fund saw the largest single-day outflow, losing $373 million. Ethereum spot ETFs also posted outflows totaling $79.48 million.

These withdrawals added to the downward momentum in Bitcoin and Ethereum, further weighing on the broader market.

Altcoins Fall Sharply as Market Weakness Spreads

Altcoins have not been spared. XRP dropped nearly 12% in a day, falling below $1.45 and settling near $1.40. Solana slid below $95 and is now trading around $92, its lowest level since 2024.

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XRP Price Drops Below $1.45 as Open Interest Slides

XRP’s decline has been accompanied by a steep fall in open interest, now at its lowest point since November 2024, signaling reduced participation from derivatives traders.

Solana Price Hits Lowest Level Since 2024

Solana is hovering near the $90 level, with further weakness possible if that support fails.

Avalanche Tests Long-Term Support Near $9

Elsewhere in the altcoin market, Avalanche is testing long-term support near $9, while Ethereum continues to face persistent selling pressure, with lower support levels from April 2025 coming into focus.

Macro Uncertainty and Interest Rate Fears Weigh on Crypto

The crypto sell-off is closely tied to broader macroeconomic concerns. The decline mirrors weakness in traditional markets such as the S&P 500 and gold, pointing to a macro-driven pullback. Hopes for US interest rate cuts have faded, with markets now assigning a 90% probability that rates will remain between 3.50% and 3.75%, and only a 10% chance of a cut at the upcoming Federal Reserve meeting in March.

Even the resolution of the US government shutdown has failed to support crypto prices, as investors remain focused on tight monetary policy rather than political developments.

Large Bitcoin Sales Increase Market Fear

Additional pressure has come from large Bitcoin sales. Bhutan sold $22.4 million worth of Bitcoin this week as the value of its crypto holdings dropped more than 70%, falling from a peak of $1.4 billion to about $412 million, as per the Coinpedia report. Such sales during a market downturn often increase fear and push prices lower.

Crypto Fear & Greed Index Drops to Extreme Fear

Investor sentiment reflects this stress. The Crypto Fear & Greed Index has fallen to 11, signaling “Extreme Fear” and highlighting the sharp drop in confidence among retail investors, as per the Coingape report.

FAQs

Why is the crypto market crashing right now?
The market is falling due to heavy selling, liquidations, ETF outflows, and growing macroeconomic uncertainty.

Why is Bitcoin price falling right now?
Bitcoin is under pressure from selling, ETF outflows, and forced liquidations.