Deep Upadhyay
28-02-2026
Why is crypto crashing today when just months ago the market stood above $3.28 trillion? In only two months, value shrank to $2.17 trillion. At the time of writing, CoinMarketCap shows the global market cap near $2.2 trillion after a 6% daily fall. This sudden crypto market crash has shaken confidence and revived old fears.
Bitcoin price drop below $64K added pressure. Over the past year, it slid near $62K and now trades at $63,633.07 after a 6% intraday decline. Ethereum fell more than 8% to $1,853. XRP dropped 10% to $1.27.
The biggest trigger appears geopolitical. According to The Kobeissi Letter, Israel launched a “preemptive attack” on Iran. Explosions were reported in Tehran, with red alerts in Israel. Additionally, U.S. forces joined the strikes.
Source: The Kobeissi Letter
Reports suggest:
Explosions in Tehran
Assassination-style strikes
Key government sites targeted
Two waves of attacks
Intelligence HQ and presidential palace hit
Markets reacted instantly. Over $100 million in leveraged longs were liquidated within 15 minutes. Data from Lookonchain showed ETH plunged sharply, and trader Machi Big Brother lost nearly all of his $245K deposit in just four days. His account balance fell to $13,580. When war headlines dominate, risk assets suffer.
Source: Lookonchain
Another factor comes from Washington. The Epstein files news has added fresh political tension. BBC reported that the U.S. Department of Justice faces accusations of withholding documents linked to Donald Trump. A woman accused him of abuse involving Epstein; he denies wrongdoing.
Political uncertainty affects markets. If leadership stability weakens, policy clarity slows. Many investors viewed Trump as pro-crypto. Any legal risk creates doubt about long-term plans to make America a crypto capital. That doubt weighs on sentiment and strengthens the narrative of why is crypto crashing today.
Sentiment indicators confirm the stress. The fear and greed index measure now sits around 11, deep in extreme fear. These levels mirror risk aversion during the FTX collapse and the 2020 pandemic crash.
At the same time, broader fears rise. Robert Kiyosaki warned that AI adoption is replacing jobs, citing Jack Dorsey cutting 4,400 roles. AI job layoffs reduce risk appetite among retail traders. When people fear income instability, speculative markets feel it first. Combined with war and politics, the market crash deepens.
Source: Robert Kiyosaki X
Despite the panic, signals of support exist. Lookonchain data shows BlackRock received 4,082 BTC worth $269.41M from Coinbase Prime. Over three days, it accumulated 9,615 BTC totaling $635M. New wallets also bought EDEL aggressively, spending over 80 ETH combined within hours of creation.
Dip buying suggests confidence. Jimmy Wales stated that Bitcoin to zero is unlikely, even if prices fall to $10K. History shows recovery often begins when fear peaks. That leaves investors asking not only Why is market crashing today, but also will it recover?
Expert analysis suggests short-term volatility may continue while conflict and political headlines unfold. However, institutional accumulation and long-term adoption trends offer structural support.
Why is crypto crashing today? War escalation, Epstein files news, AI-driven job fears, and extreme sentiment created a perfect storm. Yet institutional buying and strong long-term belief counter panic. Markets move in cycles. Fear dominates now, but recovery signs quietly build beneath the surface.
YMYL Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments involve high risk. Always conduct independent research and consult a financial advisor before making investment decisions.
Deepmala Upadhyay is an experienced crypto journalist, content strategist, and News writer with over 5 years of expertise in writing and the crypto industry. Holding a Bachelor's Degree in Computer Science and a deep understanding of blockchain technology and financial markets, she excels in delivering exclusive news, in-depth research blogs, and expertly crafted on-page SEO content. As a team lead and content writer at CoinGabbar, Deepmala is responsible for analyzing blockchain technologies, cryptocurrency, price movements, and the crypto market with precision and insight. Her keen ability to create well-researched, impactful content, combined with her expertise in market analysis, makes her a trusted voice in the crypto space.
Deepmala Upadhyay is an experienced crypto journalist, content strategist, and News writer with over 5 years of expertise in writing and the crypto industry. Holding a Bachelor's Degree in Computer Science and a deep understanding of blockchain technology and financial markets, she excels in delivering exclusive news, in-depth research blogs, and expertly crafted on-page SEO content. As a team lead and content writer at CoinGabbar, Deepmala is responsible for analyzing blockchain technologies, cryptocurrency, price movements, and the crypto market with precision and insight. Her keen ability to create well-researched, impactful content, combined with her expertise in market analysis, makes her a trusted voice in the crypto space.
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