Crypto falling — here are the reasons why

Crypto is down across the board in the past 24 hours as the total market cap fell about 1.4% to $3.83 trillion. Bitcoin trades around $113,680, down 0.9% in the last 24 hours, while Ether is at $4,195, down 0.6%. XRP led losses among large caps, falling 3.6%. The Crypto Fear & Greed Index printed 44 (Fear). 

For those wondering why is crypto falling today, the answer includes macro caution, a leverage shakeout, and fresh policy headlines.

Key points

• Stronger U.S. dollar and caution ahead of Jackson Hole weigh on risk assets.
• $450M+ in 24h crypto liquidations amplify downside. 
• Delay of crypto ETF decision adds a regulatory overhang. 

Stronger dollar and Jackson Hole caution

A firmer dollar into the Aug. 21–23 Jackson Hole Economic Policy Symposium has pressured risk assets, including crypto. Traders are waiting for Fed Chair Powell’s remarks and the possibility of a less-dovish tone, which can tighten financial conditions and cool speculative flows, explaining why is crypto dumping. Stocks and FX markets show the same risk-off setup. 

Leverage washout and liquidations 

Derivatives markets saw $450M+ of liquidations over 24 hours, with longs bearing the brunt. Forced selling during these waves typically accelerates spot declines and widens intraday ranges, another reason why is crypto going down.

ETF approval delays weigh on crypto

Regulatory delays in approving crypto exchange‑traded funds (ETFs) are dragging on investor confidence. The U.S. Securities and Exchange Commission has postponed decisions on a range of spot ETFs, including Bitcoin, Ethereum, XRP, Solana, Litecoin, and Truth Social’s Bitcoin and Ethereum product, pushing many final rulings to October 2025. These delays keep institutional and retail investors on edge, reducing optimism for new inflows, helping explain why is crypto going down right now. 

What’s driving today’s crypto market crash 

Today’s crypto market decline reflects a convergence of macro headwinds, technical factors, and regulatory uncertainty. The stronger dollar ahead of Jackson Hole, massive liquidations, and ETF delays create a challenging environment for digital assets. While the 1.4% market cap decline to $3.83 trillion represents a modest pullback, the combination of these factors explains why crypto is falling today and why sentiment remains cautious.