Why did the crypto market drop suddenly this week?
The market dropped mainly due to a leverage flush — BTC and ETH had extremely high funding rates, meaning too many traders were going long with borrowed money.
When price dipped slightly, it triggered cascade liquidations, which accelerated the fall.
Other factors adding pressure:
Risk-off sentiment in traditional markets
Weekend low liquidity
Some fear generated by security incidents and rumors circulating on social media
Short-term profit-taking after BTC’s previous rally
ETH
3,333.5
+5.96%
