- Over $70B in crypto market value dropped in under an hour
- The selloff aligned closely with the U.S. stock market open
- ETF flows, hedging, and algorithms likely amplified volatility
Crypto markets saw a sharp and sudden selloff, with more than $70 billion in total market value erased in roughly an hour. Bitcoin and Ethereum led the decline, while smaller-cap tokens posted even steeper losses. While the move looked extreme on charts, it also served as a reminder of how quickly liquidity can disappear in crypto during high-volatility windows.
Why the Drop Hit After Wall Street Opened
One pattern traders keep pointing to is timing. The selloff accelerated shortly after U.S. equity markets opened around 9:30 a.m. ET, a period often associated with ETF flows, hedging activity, and algorithmic trading spilling over into crypto. Even though crypto trades 24/7, it still reacts to traditional finance rhythms when large institutional systems come online.
Manipulation or Market Mechanics?
Calls of manipulation tend to follow any sharp move, but proving coordinated intent is difficult. High-frequency trading, derivatives positioning, and risk rebalancing around equity market opens can all amplify downside moves without any single actor pulling the strings. The speed of the drop made it feel dramatic, but structurally, this kind of volatility isn’t unusual for crypto markets.
