Why did cryptocurrency crash today? Here is the exact reason:

The decline of cryptocurrency is being blamed on almost everything possible, from Iran to the Federal Reserve (Fed) of the United States.

However, the answer to this question is actually quite simple when you look at the cash flow data.

Why is Bitcoin below $79,000? It's entirely due to the liquidity situation.

As noted in this chart, there have been 3 clear liquidations, totaling approximately $1.3 billion in the past 12 hours.

In a market where liquidity is highly volatile, extremely high prolonged leverage is creating "gaps" in pricing.

Combine this with crowd psychology, continuously shifting from extremely optimistic to extremely pessimistic, and the volatility becomes more pronounced.

This is a great time to take advantage of the polarization in emotions and prices.