Why Is Crypto Crashing Today? Bitcoin Fell Below $112K And $1.7 Billion in Liquidations – Best Crypto To Buy During This Dip?

Market Overview - Crypto markets are experiencing significant pressure, with Bitcoin dropping below $112K and currently trading at $112,660, leading to a total market cap of $3.9 trillion [1] - Over the last 24 hours, more than 402,000 traders were liquidated, resulting in $1.7 billion in losses, predominantly from long positions which accounted for $1.62 billion [1][2] Liquidations and Token Unlocks - The recent selloff is attributed to upcoming token unlocks worth over $517 million in the next week, raising concerns about additional selling pressure [2] - Liquidations and token unlocks are the primary factors behind the immediate market crash, compounded by macroeconomic uncertainties affecting market sentiment [3] Institutional Demand - Despite the downturn, there has been a notable inflow of $163 million into U.S. Bitcoin spot ETFs, indicating that institutional demand remains strong [3] Price Levels and Market Sentiment - Bitcoin is currently testing the critical support level at $112K; failure to maintain this level could lead to a drop to $108K or even $100K, while reclaiming $117K could allow for a push towards $123K [4] - Ethereum is also under scrutiny as traders monitor its ability to stabilize above $4,000 following its recent decline [4] Investment Opportunities - For long-term investors, current dips may present opportunities to buy top cryptocurrencies like BTC, ETH, and SOL, although near-term volatility is expected as the market adjusts to liquidations and supply shocks from token unlocks [5]