Why Did Bitcoin Crash 15% Today? Main Causes Explained

The Crash

Bitcoin along with other cryptocurrencies crashed by over 15% in a single day. Everybody is curious to know what caused such a massive dump? Bitcoin’s price collapsed from roughly $122,550 to about $102,000 within a single day on Binance.
This sudden plunge wasn’t random. Below are the key forces behind the dump:

1. Macro Shock: Tariff War & Geopolitical Risk

The most immediate catalyst was the announcement of 100 % tariffs on Chinese imports and tighter export controls by the U.S. administration, which shook global markets. This kind of escalation triggered a “risk-off” mood — investors sold risky assets in favor of safe havens.

Since crypto is viewed as a high-volatility asset, it tends to suffer heavily in such scenarios. The trade war fears undermined confidence across equities and digital assets alike.

2. Massive Liquidations & Leverage Unwinds

As Bitcoin broke critical support zones ($118.6K), many leveraged long positions were forcibly liquidated, accelerating the fall. Reports suggests around 16.1 Billion dollars in longs were liquidated in a short timespan.

These kinds of cascade liquidations amplify volatility, turning what might be a moderate correction into a steep crash.

3. Profit-Taking after a Parabolic Run

Bitcoin had been pushing all-time highs recently, and many traders saw this as an opportunity to lock in gains at $126,200. Whales and long-term holders likely offloaded portions of their holdings, especially at the top. That selling pressure added fuel to the drop.

4. Weak Technical Structure & Broken Support

From a technical charting perspective, the crash was inevitable. Once support lines gave way, there was little to stop momentum from cascading down further. Also we updated about a possibility of Crypto Winter when BTC broke below $118.6K just before the massive crash, you can read it here.

In short: the market structure was fragile, and when sentiment turned — aided by external shocks — it cracked.

Visual of the Dump

As of now, BTC/USDT on Binance is hovering in the $112,000 zone following the crash. It remains to be seen whether buyers step in to defend these levels or if further downside beckons. Let the dust settle for more clarity.
BTC is trading at $112,311 during writing of this article.

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