The post Why Bitcoin Is Dropping Today? Crypto Market Faces $144 Billion Loss appeared on BitcoinEthereumNews.com.

The post Why Bitcoin Is Dropping Today? Crypto Market Faces $144 Billion Loss appeared first on Coinpedia Fintech News Bitcoin Price today saw a sharp price crash, falling below $86,500 and triggering a crypto market crash. BTC Price dropped from around $91,300 to nearly $87,000 within hours, wiping over $144 billion off the total crypto market cap.  Why Is the Crypto Market Down Today? The market was already under pressure from concerns about inflation, tariff talks, and consistent outflows from Bitcoin ETFs. Fear intensified when Yearn Finance experienced a major exploit: hackers drained its yETH pool and routed 1,000 ETH through Tornado Cash. This incident raised fresh concerns about DeFi security.  With sentiment already weak, the attack added further selling pressure, contributing to the sudden crypto crash as traders worried that panic withdrawals could spread across other DeFi platforms. Bitcoin Price Crash Caused by Big Sell-Offs and Market Moves The decline wasn’t solely due to the DeFi hack. Since mid-November, the market has been undergoing heavy deleveraging, clearing billions of dollars in long positions. This makes Bitcoin highly sensitive to even minor sell-offs. Analyst Ash Crypto noted that Bitcoin’s $5,000 drop wiped out over $210 billion from the market and liquidated nearly $700 million in positions, despite no significant negative news. He described the event as a “pure manipulation dump,” likely aimed at flushing leveraged traders. Weekend Selling and Thin Liquidity Worsen the Market Drop The weekend liquidity in crypto remains extremely thin. With fewer active buyers and sellers, any sudden wave of selling impacts the market more severely. Combined with record-high leverage on exchanges, these drops can trigger cascading crypto liquidations, creating a domino effect that accelerates the crash. This move reflected structural weaknesses, not a fundamental decline in Bitcoin’s value. .article-inside-link { margin-left: 0 !important; border: 1px solid…

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Filed under: News - @ December 1, 2025 7:27 am