Crypto markets opened Thursday deep in the red as traders scrambled to answer one question. Why is crypto down today?
Bitcoin briefly slipped below $73,000 while major altcoins, including Ethereum, Solana, XRP, and BNB, followed the sell-off. The downturn came as markets absorbed a wave of liquidations, record-breaking IBIT ETF outflows, and escalating Trump-Iran tensions following reported strikes across the Middle East.
Despite the chaos, President Donald Trump doubled down on his pro-crypto stance, declaring he would “never let crypto down” while accusing former SEC Chair Gary Gensler of nearly destroying the industry. Trump also promised to codify a future-proof digital asset framework that “crypto haters” could not reverse.
Why Is Crypto Down?
Why crypto down became the dominant narrative, with CoinGlass data showing $936 million in liquidations over the past 24 hours. Long positions accounted for $873 million of the wipeout as aggressive bullish bets were flushed from the market.
Bitcoin alone saw $355 million in liquidations, followed by Ethereum at $242 million, Solana at $26 million, XRP at $19 million, and smaller but notable losses across BNB futures.
This decline is also happening amid a sharp risk-off shift across global markets. Geopolitical uncertainty tied to Trump-Iran developments pushed investors away from speculative assets, while crypto futures open interest fell another 1.2%.
Pressure intensified ahead of Friday’s massive options expiry, with $7.5 billion in crypto contracts set to settle. Bitcoin’s max pain level currently sits near $69,000 while Ethereum’s is under $2,000, setting the stage for heightened volatility as we unwind hedges.
Meanwhile, Pump.fun continued unloading SOL, dumping another 100,000 tokens worth $8.3 million as part of its $780 million sell-off campaign.
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IBIT ETF Records Historic Outflow
BlackRock’s IBIT ETF posted its largest single-day outflow ever, shedding $527.8 million. The redemption extended the fund’s losing streak to eight straight trading days, bringing total outflows close to $1.8 billion. This IBIT ETF sell-off heavily contributed to Bitcoin’s drop and marked the largest withdrawal episode since the product launched.
However, despite the outflows, the fund still controls nearly $60 billion in assets and represents roughly 4% of Bitcoin’s circulating supply, with cumulative net inflows still sitting above $56 billion overall.
The IBIT ETF weakness coincided with rising Treasury yields and a flight from risk assets. While Grant Cardone’s firm reportedly bought another 130 BTC during the dip, bullish narratives were overshadowed by the sheer scale of ETF selling pressure.
Why is Crypto Down? Trump and Iran Headlines
Trump-Iran tensions became another major catalyst behind today’s market weakness after reports of fresh kinetic strikes across the Middle East rattled investors globally.
Bitcoin quickly lost momentum below $73,000 as people moved toward safer assets. Yet even as geopolitical fears intensified, Trump continued reinforcing his support for crypto.
“We will never let crypto down,” Trump said, while criticizing Gensler and what he called the “anti-crypto army” for driving innovation offshore. Trump also pledged to establish permanent digital asset market structure legislation designed to protect the industry from future regulatory reversals.
At the same time, Senator Cynthia Lummis urged Congress to send the Clarity Act to Trump immediately, warning that failure to pass the bill this session could undermine America’s position in the global crypto race.
The proposed framework would further cement the United States as a crypto hub and aligns closely with Trump economic messaging during the escalating Iran crisis.
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Bullish Signals Still Emerging Beneath the Panic
Despite the brutal sell-off, several longer-term bullish developments continue building. VanEck CEO Jan van Eck remains constructive on Bitcoin long term, though he warned that 2026 historically aligns with the weaker phase of the four-year halving cycle. According to Van Eck, the current correction resembles a normal cycle reset.
Adoption metrics also continue climbing. Crypto-linked payment cards reached a record $7.8 billion in cumulative transaction volume, with monthly usage growth surging 230% since May 2025.
Traditional finance remains active as well. Goldman Sachs recently raised its S&P 500 year-end target to 8,000, a move that could eventually benefit crypto markets.
Even in derivatives markets, some traders see potential upside. Ether shorts clustered near the $2,000 level could face a massive short squeeze worth nearly $2 billion if ETH decides to flip the script from current levels.
Overall, today’s session highlights exactly why crypto down remains the dominant market narrative in the short term. ETF outflows, leveraged liquidations, geopolitical stress, and options expiry volatility have combined into a perfect storm for risk assets. Yet underneath the panic, institutional adoption, regulatory progress, and expanding real-world crypto usage continue moving forward.
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