The crypto market is falling today: what are the major reasons behind it?
Geopolitical tensions, profit-taking by whales and massive liquidations have shaken the crypto market
The crypto market is once again in a phase of decline, which has taken the sleep of investors away. On 21 June 2025, the market cap of the overall crypto market fell by 1.26%, which has now come down to $3.21 trillion. In this fall, there was a loss of about $240 billion. After all, what is the reason for the market falling so fast? Let us understand in detail.
The impact of geopolitical tensions on the crypto market
The biggest reason for the crypto market crash is the growing geopolitical tensions, especially the growing tension between Israel and Iran. Apart from this, the aggressive statement given by former US President Donald Trump against Iran also caused tension for investors. Trump openly threatened Iran after the failure of the diplomatic agreement, which has created the fear of another war-like situation in the Middle East.
In a volatile and risk-sensitive market like the crypto market, such geopolitical risks have an immediate impact. Due to this uncertainty, investors started withdrawing money from risky assets like crypto. Even major coins like Bitcoin are not safe. In the last one week, the price of Bitcoin fell from $108,000 to $103,127 – a drop of almost 2%.
Whale Sell-Offs: Profit-taking by big investors is also a big reason
Another big reason in the market crash is whale sell-offs. Whale means such big investors who have a lot of crypto. According to the data of Glassnode, wallets which held Bitcoin for 6 to 12 months have recently sold Bitcoin worth $900 million.
The beginning of June also showed a trend of profit-taking, in which some whales took a profit of over $1 billion. This level of profit-taking shakes the overall market sentiment. When whales transfer their assets to exchanges, the panic sell-off grows — and prices fall even lower.
Altcoins such as Ethereum and Solana have become the biggest victims of this panic. Because these coins are more volatile, there is more pressure on them.
Liquidations have increased problems
Leverage trading is a common thing in the crypto market, but when prices fall, there is a tsunami of liquidations. In the last 24 hours, crypto positions worth $503 million were liquidated — affecting 134,000 traders.
Ethereum was most impacted, recording liquidations of $183 million. The largest single liquidation was a Bitcoin trade of $8 million on the Bybit exchange. When leveraged traders ran out of margin, their positions were forcibly closed — causing the market to plunge even lower.
Why did Altcoins suffer the most losses?
Bitcoin saw a decline of just 2%, but altcoins suffered much more. Ethereum’s price fell 10% to $2,456. Solana lost 11%, and XRP also fell 1.4%. The Altcoin Index also fell to 22 — indicating that the market is now relying solely on Bitcoin.
When the market is unstable, investors flock to comparatively stable assets — like Bitcoin. This is why altcoins take the biggest hit. Their fall is accelerated due to high volatility and low liquidity.
What should investors do?
The crypto environment is very challenging right now. Geopolitical tensions, whales profiting, and massive liquidations — three factors together have turned the market bearish.
Investors must understand that crypto is a high-risk investment. Patience and research both are important during such times. Do not trade without thinking in pursuit of short-term gains. This is the time to take safe and informed decisions.
Disclaimer: Crypto products and NFTs are not regulated and are very high-risk investments. There is no regulatory resource for any loss. The information given above is for educational and informational purposes only. Do your own research or seek advice from a financial expert before taking any financial decision.