Crypto Chaos Unleashed: Decoding the $120 Billion Wipeout and Bitcoin’s Plunge Below $90K
Introduction: A Shocking Day for Crypto Investors
The crypto market is bleeding red right now. In the last 24 hours, it has wiped out over <$120 Billion Wipeout> from its total value. The overall market cap has slipped to around $2.98 trillion, breaking below the crucial $3 trillion barrier. Leading the charge down is
Why is this happening today? Fear is gripping traders as global events spill over into crypto. In this post, we break it down simply: the triggers, the data, and what might come next. If you’re wondering why the crypto market is crashing today, stick around for clear insights.
The Big Picture: Total Market Cap in Freefall
The crypto total market cap—often tracked as ‘TOTAL’ on charts—dropped like a stone. It shed $120 billion in a flash, pushing through the $3 trillion support level. Right now, it’s bouncing nervously around $2.98 trillion.
Such fast drops signal panic selling. When bad news hits, traders rush to sell and lock in gains or cut losses. This creates a snowball effect: more sellers mean lower prices, which scares more people into selling.
- Key Level Broken: $3 trillion was a psychological wall. Losing it shakes confidence.
- Next Support: Eyes on $2.92 trillion. If it holds, recovery is possible. If not, more pain ahead.
High trading volume on the sell side confirms the fear. Low buy volume means few are stepping in yet.
Main Trigger #1: Trump’s Tariff Threats Shake Global Markets
The spark comes from outside crypto. President Trump has ramped up talk of new tariffs on Europe. This fuels worries about a global trade war. Tariffs mean higher costs for goods, slower growth, and rocky economies.
Crypto loves risk when times are good. But in uncertainty, it’s a ‘risk-off’ asset. Investors pull money from volatile coins like Bitcoin and move to safe havens.
Enter gold: prices are surging as the go-to safe asset. When gold climbs, crypto often bleeds. Capital rotation is real—funds flow out of high-risk plays into stability.
Insight: If tariffs kick in, expect ongoing pressure. Crypto needs calm trade talks to rebound.
Bitcoin’s Brutal Decline: Breaking $90K Support
Why so sensitive? Bitcoin sets the tone for the whole market. When BTC falls, altcoins follow fast.
- Volume Spike: Heavy selling shows bears in control.
- On-Chain Signals: Outflows from exchanges suggest holders are nervous, but not capitulating yet.
For bulls, reclaiming $90K is vital. A close above could spark a bounce.
Monero’s Massive 21% Crash: Privacy Coins Under Fire
Monero (XMR) stole the show for worst performer, down 21% to $491—well under $500. Privacy coins like XMR get dumped first in downturns. Why? They’re seen as extra risky amid regulations and market fear.
On-chain data reveals outflows: long-term holders are selling. Next stop could be $450 if no buyers emerge.
XMR needs volume from dip buyers to stabilize. Privacy demand is strong long-term, but short-term pain is real.
Silver Linings: Big Buys and Future Catalysts
Not everything is doom. Corporate giant MicroStrategy scooped up 22,305 BTC for $2.13 billion—their biggest buy since November 2024. Total holdings now exceed 709,715 BTC. This screams long-term belief in Bitcoin.
Yet, markets ignored it: MSTR shares fell over 7%. Short-term fear rules.
More upside potential: Trump Media & Technology Group plans a digital token airdrop. Record date is February 2, 2026, for DJT shareholders via Crypto.com partnership. This could draw fresh eyes to crypto later.
Technical Outlook: Key Levels to Watch
Recovery hinges on holding supports:
| Asset | Current Price | Key Support | Resistance |
|---|---|---|---|
| Total Market Cap | $2.98T | $2.92T | $3T |
| Bitcoin (BTC) | $89,225 | $89,241 | $90K |
| Monero (XMR) | $491 | $450 | $500 |
Short-term: Volatility ahead. A risk-on shift from better economic news could flip it.
Long-term: Bitcoin bulls eye higher highs. History shows crashes lead to booms.
Other Factors Fueling the Fire
- Gold Rally: Safe-haven demand drains crypto liquidity.
- Broad Risk-Off: Stocks wobble too, correlating with crypto.
- Weekend Effect: Lower liquidity amplifies moves.
Global calm—like softer inflation data—could revive appetite for risk assets.
Investor Tips: How to Navigate This Storm
The <$120 Billion Wipeout> hurts, but crypto has bounced from worse.
- Diversify: Spread across BTC, ETH, stables—not all-in one coin.
- Track Metrics: Watch on-chain flows, volume, funding rates.
- Stay Informed: Macro news like tariffs moves markets fast.
- Buy Smart: Dollar-cost average into dips, but size positions wisely.
Patience pays in crypto. Fear fades, greed returns.
Conclusion: Path Back to $3 Trillion?
Today’s crash stems from tariff fears, gold flows, and risk aversion. Bitcoin and Monero lead losses, but key supports offer hope for rebounds. Long-term, adoption grows—MicroStrategy proves it.
Short-term chop expected. Watch macro shifts closely. The road to $3 trillion reopens if panic eases.
What do you think caused this drop? Will BTC hold $89K? Drop your thoughts in the comments!
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