Why is the crypto market down today?
Crypto Market Slumps Amid Geopolitical Uncertainty and Heavy Liquidations
The cryptocurrency market saw a sharp decline on May 30, as renewed concerns over stalled US-China trade talks, substantial long liquidations, and weakening technical signals weighed on investor sentiment.
Key Highlights:
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Market Cap Decline: The total cryptocurrency market capitalization fell by 2.60% to $3.34 trillion.
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Massive Liquidations: Over $683.4 million in crypto futures were liquidated, including $617.85 million in long positions.
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Technical Breakdown: The total market cap dropped below a key support level, risking a further decline toward $3.1 trillion.
Bitcoin Leads Broad-Based Sell-Off
The downturn began during late trading hours in New York on May 29, following comments from US Treasury Secretary Scott Bessent, who confirmed that trade negotiations with China had stalled. His remarks triggered a risk-off sentiment across financial markets, particularly hitting speculative assets like cryptocurrencies.
“I would say that they are a bit stalled,” Bessent said in a May 29 Fox News interview, emphasizing the need for direct dialogue between the two nations’ leaders to move forward.
The stalled talks have raised fears of prolonged geopolitical uncertainty, prompting investors to exit riskier positions, including Bitcoin and altcoins.
Futures Market Hit by $680M in Liquidations
The broader sell-off was exacerbated by a surge in futures liquidations, totaling $683.4 million over the past 24 hours. Long positions made up the majority, with $617.85 million wiped out, compared to just $65.55 million in short liquidations.
Bitcoin and Ether bore the brunt of the losses, with liquidations reaching $211.21 million and $112.53 million, respectively. Other major assets like Solana ($31.69M), XRP ($29.42M), and Dogecoin ($21.39M) also saw significant forced selling.
This wave of liquidations has intensified the downward pressure, triggering further fear-driven selloffs.
Technical Breakdown Suggests Further Downside
Technically, the market's decline follows a break below a multi-week support level around $3.35 trillion. The total crypto market cap (TOTAL) is currently retesting a secondary support zone at $3.22 trillion.
Historically, falling below this level has led to steep corrections—such as the 26% drop seen after February 24. The Relative Strength Index (RSI) has also declined sharply from an overbought reading of 79 on May 10 to a more neutral 52, indicating growing bearish momentum.
If the TOTAL market cap breaches $3.22 trillion, a decline toward the 200-day simple moving average near $3.1 trillion is increasingly likely in the short term.
