I just noticed that the crypto market is really red today. Looking at the chart, Bitcoin has dropped from its previous price and is now around $80.94K with a 24-hour decrease of about 1.83%. Then I started wondering, why is the crypto market red today? Turns out, there has been a massive liquidation.

From the data I saw, long positions that got liquidated are much more numerous than shorts. Most traders with long positions are affected by the decline. Besides Bitcoin, other assets also plummeted—Ethereum down 3.58%, Dogecoin weakened by 4.85%, and Cardano also down 1.25%. Solana is relatively stable at -0.11%, but still in the red. Interestingly, amidst this market, Chainflip actually rose 3.13%, like going against the flow.

Why is the crypto market red? It seems related to the movement of US Treasury yields which are rising. Yesterday, the ISM data was released, with private PMI rising to 54.1, higher than the previous month. The market reacted to this data and is worried that inflation will rise again. As a result, pressure spilled over into the crypto market and the equity market.

So, in summary, why is the crypto market red today? A combination of massive liquidations, economic data that causes panic, and inflation fears. I just watch and monitor, who knows there might be a bounce later. The important thing is not to panic first; markets always have their cycles.