Why Crypto Market is Down Today: Coinbase or Ripple Case Behind?

Why Crypto Market is Down Today: Coinbase Hack and BTC Selloffs Hits

The cryptocurrency market is facing a rough day. The total global crypto market cap has dropped to $3.39 trillion, showing a 3.9% fall in the last 24 hours. The 24-hour trading volume has dropped to $97.6 billion. Bitcoin dominance is now 60.3%, and Ethereum holds 8.86%. 

Why Crypto Market Is Down Today?

Coinbase Hack and SEC Investigation: One of the main reasons behind the drop is the trouble at Coinbase, one of the largest platforms. Just days before its inclusion in the S&P 500 index (May 19), Coinbase faced a cyberattack. Hackers, with help from rogue overseas support agents, accessed personal data from less than 1% of users. Thankfully, no passwords, keys, or funds were stolen.

The hackers demanded a $20 million ransom, but Coinbase refused. Instead, the company set up a $20 million reward fund to catch the attackers. Experts estimate this attack could cost Coinbase up to $400 million.

At the same time, the SEC reopened an investigation into Coinbase’s handling of user data. Even though the S&P 500 listing will still happen, this situation has made many investors nervous.

Ripple’s Legal Fight with the SEC Hits XRP Price: XRP, the token linked to Ripple, fell nearly 4%—from $2.40 to $2.32, then slightly recovered to $2.34. This drop happened after a judge rejected two SEC requests:

Source: CoinMarketCap

• One was an “indicative ruling”, which would’ve changed a past decision.
  

• The second was to reduce Ripple’s civil penalty to $50 million—which was denied as “procedurally improper.”
  

Lawyer John Deaton explained that for a deal to happen, the SEC must drop some claims, and Congress must support crypto-friendly laws. He also said Ripple’s sales didn’t hurt investors and that working with traditional finance players is the way forward.

Bitcoin Price Drop and Whale Selloffs: Bitcoin has also been falling. It’s now trading around $102,815, down by 1.04% today. The market cap is at $2.04 trillion, and daily volume is at $42.58 billion.

For the last week, B itcoin has been stuck between $100K to $105K. According to analyst Ali Martinez, Bitcoin whales have sold over 30,000 BTC in the last 72 hours. 

Source: X

This big sell-off is one of the reasons Bitcoin is in a bearish zone right now.

What’s Next? Key Events and Market Sentiment

Looking ahead, some major updates could shape the market:

• U.S. interest rate decisions
  

• Monthly CPI (Consumer Price Index) data
  

• Yearly CPI numbers
  

All of these can affect how people invest in crypto.

Despite today’s crash, the Crypto Fear and Greed Index is at 74, which is still in the “greed” zone. This shows that investors are confident—but some might be too confident, which often leads to corrections.

Conclusion

The crypto market is clearly under stress today. The Coinbase hack, the Ripple-SEC legal drama, and Bitcoin whale selling have shaken confidence. However, with strong community interest and upcoming U.S. financial updates, the industry could bounce back—or fall further if fear grows.