Why is Crypto Down Today and Will it Recover? Key Events Behind Crash

The crypto market is seeing a major drop today, and traders are worried. The total global crypto market cap has fallen to $3.41 trillion, down 3.1% in the last 24 hours, as per Coingecko data. The daily trading volume stands at $91.7 billion. Bitcoin (BTC) still holds dominance at 61%, while Ethereum is at 9.23%.

Why is Crypto Down Today? Main Cause Behind the Market Crash

Trump Doubles Tariffs-Market Reacts : One major reason for the crypto crash today is political tension in the U.S. President Donald Trump has doubled tariffs on steel and aluminium, raising them from 25% to 50%. This Trump tariffs news is causing fear across global financial markets. The move affects many products and could lead to trade fights with other countries. Traders fear this will hurt industries and slow down economies — and that’s bad news for risky assets like cryptocurrency.

Robert Kiyosaki Market Crash Warning : Another reason is the Robert Kiyosaki market crash warning. Kiyosaki, the author of "Rich Dad Poor Dad," recently repeated his old predictions — saying a huge crash could hit this summer. He believes the U.S. stock and bond markets could wipe out millions of investors.

Source: X

He also sees Bitcoin price rising as people lose faith in traditional systems. Kiyosaki thinks gold could hit $25,000, silver $70, and Bitcoin (BTC) might shoot up to $500,000 or even $1 million. But until that happens, fear is causing more selling.

Bitcoin Price Crash and James Wynn’s Liquidation: The Bitcoin price crash today is another key factor. BTC fell over 2% in 24 hours, currently priced at around $104,569. Over the past week, it has dropped more than 4%.

A major reason is a massive loss by trader James Wynn , who reportedly got liquidated for 240 BTC worth $25.16 million, according to Lookonchain. Although he closed part of his position to avoid further losses, he still holds 770 BTC valued at $80.5 million with a liquidation price of $104,035.

Source: X

Other big tokens are also struggling. A Solana whale sold over $6.8 million worth of SOL, causing the token to crash more than 3% in a day. SOL is now around $152.01. Meanwhile, a ChainLink whale sold hundreds of thousands of $LINK, locking in a $12M profit. As a result, LINK’s price dropped 4.16% in a day to around $13.70.

Fear and Greed Index Trigger More Panic: On top of all this, the Fear and Greed Index has fallen. Just last week, it was at 74 (Greed), but now it’s dropped to 57. This means people are getting scared and may start selling more. That adds more weight to the ongoing crash.

Why Is Crypto Crashing and Will It Recover?

It’s a mix of things: tariff fears, big investor losses, whale selling, and emotional panic. When markets feel uncertain, people usually pull their money out of risky assets first — and cryptocurrency is always on that list.

As for the future, it’s hard to say. Some believe this is a short-term correction, and coin prices may bounce back. Others fear more downside if macroeconomic issues grow worse. For now, what is going on with crypto today is mostly driven by fear, news headlines, and large player actions.

Disclaimer: This article is only for information purposes. It’s not financial advice. Always do your own research before investing in crypto or any market.