Explained: Why is Bitcoin, XRP down today?

Market Overview - The total crypto market cap has decreased by over 10% in the last 24 hours, now standing at $2.8 trillion [1] - Bitcoin (BTC) has experienced a 9% drop, trading at $83,158.22, with a low of $80,659.81 during the day [1] Liquidation and Losses - Over $2 billion worth of crypto positions were liquidated in the last 24 hours, with Bitcoin leading the losses at over $1 billion [2] - Realized losses on Bitcoin have reached levels comparable to those seen during the FTX collapse, indicating significant market distress [2] Market Sentiment and Behavior - Short-term holders are primarily responsible for the current market capitulation, as many recent buyers are quickly selling off their positions [3] - The rapid size and speed of losses suggest a retreat from the market by short-term investors [3] External Influences - The crypto market's downturn is influenced by broader economic factors, including Donald Trump's tariff escalation with China and the Federal Reserve's stance on interest rates [5] - Overall trader sentiment is shifting away from volatile assets like crypto, reflecting a cautious approach in the current economic climate [5] Historical Context - The current market conditions are being compared to the 2021-22 crash, which saw significant bankruptcies among crypto companies like FTX and Celsius [2] - The S&P 500 index also faced a significant decline, losing $2 trillion in market cap within five hours, indicating a broader market trend [5]