A crypto market crash is underway today, with Bitcoin and popular altcoins being in the red. Bitcoin price dropped to $76,000 from last week’s high of $77,000. Some of the top laggards in the industry were altcoins like RaveDAO, MemeCore, LayerZero, Aave, and Siren.
RaveDAO price crashed by over 95% in the last 24 hours, while the other four were down by over 10% in the same period. As a result, the market capitalization of all tokens dropped by 2.5% to $2.58 trillion.
Crypto crash triggered by Strait of Hormuz crisis
Bitcoin and most altcoins jumped sharply on Friday as investors cheered the decision by Iran to open the Strait of Hormuz. This decision led to a broader rally in equities and the crypto market as crude oil prices tanked.
President Donald Trump expressed his excitement about the reopening in a series of social media posts. He also talked about it in Arizona, where he addressed a crowd at an event organized by Turning Point USA.
However, in his statement, Trump noted that the blockade against Iran would remain in place until the US took the enriched uranium. In a statement on Saturday, Iran noted that the Strait was closed again, leading to a spike in crude oil futures on Hyperliquid.
The closure led to renewed questions on the future of the war. Some analysts believe that Trump is using the ceasefire to gather more troops to continue the war. The theory is that he will have a decapitating attack against Iran, which will push it to capitulate.
Another theory is that he has become bored with the war as he observes his tanking approval rate. At the same time, many people in Iran argue that the war should continue, which will prevent the US and Israel from attacking it again.
Profit-taking among crypto investors
The ongoing crypto crash is happening as investors start booking profits after the recent rally. Indeed, a closer look at the top laggards today were some of the top gainers last week.
A good example of this is RaveDAO, whose price soared by triple digits last week. It was the top laggard as it plunged by over 95% on Sunday. Similarly, Siren price recently soared to a record high and then plunged on Sunday.
The other top laggards were tokens like MemeCore, Aave, and Aerodrome Finance. It is common for the top gainers to evolve into the top laggards amid profit-taking.
Bitcoin price is struggling to exit the bearish flag pattern
The other reason why the crypto crash is happening today is that Bitcoin is struggling to exit the bearish flag pattern. The three-day chart shows that the coin has formed an ascending channel, which is part of the bearish flag pattern.
It has remained below the 50-day and 100-day moving averages and the Supertrend indicator. Therefore, there is a risk that the coin will have a big reversal, potentially to the lower side of the channel at $68,000. Such a move will lead to more selling in the crypto industry.
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