Crypto Crash: $90B Lost Overnight-BTC Tumbles to $77K, Investors Panic!

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Why Did the Crypto Market Crash Today?

The cryptocurrency market experienced a significant downturn in the last hour, losing almost $90.3 billion and dropping in overall value by 3.37% to about $2.59 trillion. Bitcoin, the leading cryptocurrency, fell to around $77,678, and other major coins like Ethereum, XRP, Solana, and Dogecoin also saw substantial declines, ranging from 3.5% to 6%.

The sudden sell-off has shaken the overall crypto market and pushed investors into panic mode. 

Bitcoin Is Trading Like a Leveraged Stock Market Bet

The recent drop in cryptocurrency prices seems to be mainly caused by broader economic factors, rather than issues specific to the crypto market. Bitcoin’s price movements have been closely mirroring those of the iShares Russell 2000 ETF (IWM), which represents smaller U.S. companies and is heavily influenced by expectations around interest rates.

As a crypto investor, I saw the market react pretty quickly when the latest inflation numbers came out higher than expected – around 6% above what everyone predicted. It basically dashed hopes that the Federal Reserve would be cutting interest rates anytime soon, and people started dumping riskier investments, like crypto, as a result.

As small-cap stocks dropped sharply, Bitcoin and the wider crypto market also fell. 

ETF Outflows and Miner Selling Added Pressure

Today’s price drop was also fueled by increased selling from institutional investors. U.S. Bitcoin ETFs saw a total of $290 million in outflows today, with BlackRock’s IBIT fund accounting for around $136 million of that amount.

Bitcoin ETFs experienced about $1.15 billion in withdrawals over the last week, which brings an end to six weeks of consistent gains.

Over the last four days, Bitcoin miners have sold around 800 BTC, valued at approximately $64 million, which has increased the amount of Bitcoin available and put downward pressure on prices, according to Ali Martinez.

Bitcoin miners have been cashing in on their earnings, selling approximately 800 BTC – around $64 million worth – in the last four days. This increased selling activity could soon lead to a drop in Bitcoin’s price.

— Ali Charts (@alicharts) May 15, 2026

$700M Liquidations Triggered Panic Selling

The price dropped quickly when many traders who had bet big on rising prices were forced to sell. Data from CoinGlass shows that almost 154,000 traders lost their positions in the last 24 hours, resulting in about $696 million lost in the derivatives market.

Bitcoin liquidations alone surged 125% to over $235 million.

As I’ve been tracking the market, I’ve noticed a significant shift in trading activity. We saw a drop of over 25% in the total open interest for crypto derivatives, which suggests traders were quickly closing out their leveraged positions. It seems many were reducing their risk exposure.

Bitcoin Breaks Key Multi-Month Support

After a recent price decrease, crypto trader TED Pillow pointed out that Bitcoin has fallen below a key upward trendline observed over several months. This drop was emphasized by two significant red candles on the daily chart, signaling a confirmed breach of that trend.

Bitcoin reached $78,000 today, but overall markets are currently showing weakness. If Bitcoin falls below $78,000, it could quickly drop to between $74,000 and $75,000.

— Ted (@TedPillows) May 16, 2026

Experts believe this could lead to a significant price drop, potentially falling to between $74,000 and $75,000 rather quickly.

If the price continues to fall, it could potentially drop to between $70,000 and $68,000, which would be a significant low point.

Altcoins See Sharper Losses

Bitcoin wasn’t the only cryptocurrency struggling. Most major altcoins also saw significant price drops, including XRP, Solana, BNB, HYPE, ZEC, Dogecoin, SUI, LINK, and ADA, as investors became more cautious.

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2026-05-16 15:09