I just saw that BTC dropped again, from $91K straight down to the current $66.51K. This decline is really significant. Many people are asking why is crypto crashing, but the underlying reasons are much more complex than they appear on the surface.

First, there's the geopolitical aspect. Recently, trade tensions between the US and Europe have escalated, especially with increasingly heated rhetoric about tariffs. When expectations of a trade war rise, investors typically pull out of risk assets like cryptocurrencies and shift into safe-haven assets such as gold. This shift in sentiment has caused a large-scale outflow of funds from the crypto market, which is one of the reasons why is crypto crashing.

The second angle is the pressure from traditional finance. Over the past two years, BTC's correlation with the Nasdaq has increased. Tech stocks have recently been hammered due to rising bond yields and some AI companies missing earnings expectations. Institutional investors are bleeding from their stock portfolios and need to liquidate the most liquid assets to cover losses—cryptocurrencies are often the first to be sold. So, another key reason why is crypto crashing is the contagion effect from the stock market.

But the most severe factor is leverage. The market has accumulated a large number of borrowed positions. When BTC broke below the $91K critical support level, it triggered a massive liquidation. It’s said that $800 million worth of long positions were liquidated within 24 hours. Once liquidations start, exchanges automatically sell these positions to cover margins, which further drives down prices, hits the next stop-loss levels, and creates a domino effect. This cycle continues until retail investors are completely wiped out.

So, in simple terms, why is crypto crashing is driven by these three forces acting simultaneously—geopolitical risks, stock market drag, and leverage liquidations. The key now is when this cycle will stop, which largely depends on whether traditional finance and macroeconomic conditions can stabilize.