Top Reasons Why is Crypto Down Today and Will the Market Recover?

The global cryptocurrency market is facing a dip again. As of today, the total crypto market cap has dropped to $3.37 trillion, which is 2.0% lower than yesterday. In the last 24 hours, the total trading volume stood at $131 billion. Bitcoin’s market dominance is at 60.9%, while Ethereum’s is at 9.48%.

Key Reasons Behind Today’s Crypto Market Crash

There are four main reasons that explain why is crypto down today:

US-China Trade War and Tensions in the Middle East: The ongoing US-China trade talks made some progress but didn’t deliver any big breakthrough. Investors were hoping for good news. But the agreement was all about rare earth exports and US-China tariffs are still high — 55% on Chinese imports and 10% on US exports.

Source: X

At the same time, news came out that Israel might launch an attack on Iran, which increased global geopolitical tensions. These developments created a wave of fear in financial sectors, including crypto.

The london us china trade talks themselves were also unable to provide complete clarity. The agreement is rather a delay and not a complete solution, according to Capital Economics analysts. This further increased skepticism on the part of investors.

Crash Of Bitcoin Price Today : On June 11, Bitcoin reached a high of $110,350, but couldn't sustain it. It fell steeply and is now trading at around $107,310, down more than 2% in 24 hours. According to experts, it has to remain above $108,300 to be stable.

Source: X

If it falls below $106,000, things could turn uglier. This decline triggered a broader sell-off that resulted in a decline of the entire crypto market . Few individuals began wondering why Bitcoin is declining today — and it is due to bad momentum and general fear.

No Interest Rate Cut by the Fed : Another reason why is crypto crashing and will it recover depends on US inflation data. The latest CPI numbers were a little better, but inflation still sits at 2.4%, above the Fed’s 2% target. That means no rate cut is expected in June or July.

This disappoints traders who were hoping for a rate cut to support risky assets like crypto. With stronger job data and sticky inflation, investors are being more cautious.

Peter Brandt Bitcoin Prediction Spooks the Market: Veteran trader Peter Brandt made headlines with his Bitcoin crash prediction, warning it could fall 75% like in 2022. This sparked memories of the previous crash when BTC dropped from $69,000 to $16,000.

But many analysts disagreed. According to Swyftx expert Pav Hundal, today’s market has stronger fundamentals. Even Michael Saylor said that fears are outdated and we’re not at a industry top yet.

Will the Market Recover or Crash Further?

Despite the crash, the Fear and Greed Index is still in the “Greed” zone at 71, slightly down from yesterday’s 72. Last week it was 57, which shows investor interest is still alive.

Extreme greed often signals a pullback, but since it hasn't reached “extreme fear,” experts say the cryptocurrency is correcting, not crashing.

Also, famous author Robert Kiyosaki gave some hope . He tweeted:

“TODAY I am buying more BITCOIN and working on a new book on ENTREPRENEURSHIP.”

This robert kiyosaki bitcoin buy move is giving some confidence back to retail investors. Even though there is fear in the market, his support adds a bit of strength.

Conclusion

Whereas the sector dropped from $3.47T to $3.37T in the course of a day, it's not done yet. The upcoming weeks — especially Fed announcements and geopolitics — will control the direction. For now, investors are watching closely, hoping that this is a brief intermission and not a big crash.

Disclaimer: This is just for informational purposes, do your own research before investing.