Why is the Crypto Market Moving Down Today?

Investors’ crypto positions are again at risk, as the market tumbles today. The uncertainty of the impact of the macroeconomic events and technical factors is affecting the digital assets’ performance, led by Bitcoin, Ethereum, and other top altcoins’ crash.

Crypto Market Cap Dips 3% Today, Liquidation Hits $414M

In just 24 hours, the broader market cap of the crypto market has declined 3%, currently at $3.8 trillion, despite crossing the $4 trillion mark earlier. This dip showcases a growing weakness in the investors’ confidence as volatility builds. Notably, the trading volume has surged to $178.4 billion, showcasing the sellers’ dominance in the market.

Not only this, the fear and greed index shows a significant decline to the neutral zone (47), and the Bitcoin dominance has dropped to 57.6, as the BTC price crashes to $110k today. Not only Bitcoin, but altcoins are also taking a toll, ETH down to $4.3k, XRP to $2.87, and more, collectively wiping out nearly half a billion from the market.

CoinGlass data confirms that nearly $414 million crypto positions have been liquidated, affecting 127.8k traders. In this, the Ethereum positions were most impacted, losing $136M long positions, whereas Bitcoin longs were liquidated only half of that; $73M.

Why the Crypto Market Crash Today?

August crypto market crashes amid macro uncertainty and seasonal headwinds. Investors are cautious after this week’s Jobless claim data release and the September Fed meeting. Additionally, the Trump vs Fed feud, including the Fed Governor Lisa Cook’s dismissal on August 28, has affected the market, as investor sentiments fell from greed to neutral.

Notably, just last week Jerome Powell’s speech at Jackson Hole barely lifted the market, but the uncertainty of upcoming macro events is affecting investors negatively today. The $14.7B crypto options expiry today also played a role.

Bitcoin and Ethereum are dumping hard

This is due to $15B option expiry and we also have monthly close in 2 days.

Don’t get shaken out in this manipulation pic.twitter.com/SYM8c2WnxU

— Ash Crypto (@Ashcryptoreal) August 29, 2025

However, experts also suggest that it’s a temporary storm after excessive leverage and macro uncertainty. Interestingly, not all cryptos are bearish; some, like PYTH, are riding the bulls. Its price has surged 100% today as the Trump administration ushers in the GDP data to blockchain.

Moreover, the long-term outcome is bullish per experts, including Eric Trump, who recently forecasted the $1 million price milestone for BTC.

Pooja Khardia

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.

Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.

Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.

When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.