The crypto market crash deepens as the global market cap tumbles to $2.56 trillion. Since last week’s warning, the market has erased more than $180 billion.
Bitcoin (BTC), Ethereum (ETH), and XRP all plunged below key support levels. Macro, technical, and geopolitical jitters are driving the sell-off.
Sentiment flips from neutral to fear
The Crypto Market Fear & Greed Index dropped sharply. It fell from 48 (neutral) to 28 (fear) in just a few days.
Bitcoin lost strength and crashed more than 2% to $76,678 and trades now above $77K today. Ethereum fell to $2,117. In fact, ETH is witnessing far higher liquidations than BTC over the last 24 hours.
Altcoins and meme coins follow lower
Top altcoins also took a hit. XRP, BNB, Solana (SOL), Cardano (ADA), and Bitcoin Cash (BCH) fell another 2–7% in the past 24 hours. This happened even after the Senate advanced the CLARITY Act.
Memecoins did not escape either. Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe Coin (PEPE) fell more than 4%. Meanwhile, AI coins saw massive profit taking today.
Why the crypto market crash deepens amid US-Iran war
Oil prices gained 2% to above $107 per barrel on May 18. Why? Because US‑Iran peace talks stalled. President Trump’s visit to China did little to pressure Iran to open the Strait of Hormuz.
Trump issued a stark warning to Iran. “The clock is ticking,” he said. He urged the country to “get moving, FAST, or there won’t be anything left of them.” Moreover, he will convene his top national security team in the Situation Room on Tuesday to discuss military options in Iran.
Inflation and Fed policy add more pressure
The latest hot US CPI and PPI data show that the energy price shock is feeding into broader US inflation. According to CME FedWatch Tool, traders now fully rule out any Fed rate cuts this year. In fact, some are betting on a possible rate hike before year‑end.
Investors now await the latest FOMC meeting minutes and flash US PMI data this week. These reports will provide clues on monetary policy and economic activity under new Fed Chair Kevin Warsh.
In the meantime, the US dollar index (DXY) climbed to a six‑week high of 99.3 today. The US 10‑year Treasury yield also climbed to around 4.63%, its highest level since January 2025.
Massive liquidations sweep the market
As the crypto market crash deepens, more than $677 million in top crypto assets got liquidated in the last 24hours. Notably, nearly $606 million came from long positions and $70 million from short positions.
This is turning into a larger liquidation event. There are no signs of buy‑the‑dip sentiment yet. In fact, over $520 million in long positions got liquidated in just four hours, according to Coinglass data.
More than 108,000 traders faced liquidation. The largest single liquidation order was an ETH‑USDT position worth $28.49 million on Bitget. Ethereum, Bitcoin, Solana, XRP, XAU, Dogecoin, WLFI, Bitcoin Cash, BNB, ADA, and WLD recorded the largest liquidations.
Risks of a deeper crash remain
Bitcoin and Ethereum options show traders turning cautious. They are opening puts ahead of the May 29 monthly options expiry.
Furthermore, Glassnode data reveals weaker capital inflows compared to past bull phases. This limits the odds of an uptrend. Market expert BIT noted a renewed pickup in price pressures for a potential crash.
10x Research revealed that more than $1 billion in redemptions from spot Bitcoin ETFs have occurred since the CPI data. “The inflation trade is back,” the firm said. It also noted that 30‑year bond yields climbed above 5.12%.
Bitcoin is now testing its 30‑day moving average. A confirmed break below would signal deteriorating momentum. 10x Research warned traders of a further crash if Bitcoin falls below the $76,922 major support. Currently, BTC trades near $76,700.
