The total crypto market cap (TOTAL) witnessed a sharp drop today as over $162 billion was wiped out in the last 24 hours. Bitcoin (BTC) fell below $86,000 in the process, with altcoins following suit, led by Zcash (ZEC), falling by 20% today.

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Global capital is pouring into US markets at record levels, with foreign investors heavily buying equities and Treasury demand shifting structurally. Meanwhile, US consumer debt has hit an all-time high, signaling a major shift in global risk appetite that could impact both crypto and equity markets.

Japan’s 2-year bond yield hit 1% for the first time since 2008 after BOJ Governor Kazuo Ueda hinted at a possible rate hike. The move threatens to unwind decades of yen carry trades, raising the risk of global deleveraging across major asset classes.

The total crypto market cap dropped by $162 billion in the past 24 hours, falling to $2.89 trillion. TOTAL is now holding just above the key $2.87 trillion support level as investors assess ongoing volatility and market-wide uncertainty.

A wave of liquidations triggered a cascading sell-off, pushing major tokens sharply lower. If this decline persists, TOTAL may break below $2.87 trillion and fall toward $2.80 trillion, deepening losses across the crypto market.

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If conditions stabilize, TOTAL could rebound from the $2.87 trillion support zone. A push toward $2.93 trillion would be the first recovery signal. Breaking that level could reopen the path toward $3.00 trillion and higher.

Bitcoin is down 5% today, trading at $85,801 while holding just above the $85,204 support level. If broader market conditions worsen, BTC could lose this footing and slip below $85,000, increasing downside pressure.

A breakdown would leave Bitcoin vulnerable to a decline toward $82,503, a level previously tested during intra-day lows. Losing that support could open the door to a deeper correction toward $80,000, extending investor losses.

If conditions improve, Bitcoin may rebound from $85,204 and regain upward momentum. A climb toward $89,800 would be the first major recovery signal. Breaking that barrier is essential for completing a broader market rebound.

ZEC is down 20% in the past 24 hours and now trades at $364, holding just above the crucial $344 support level. The sharp decline reflects significant selling pressure as the broader market continues to struggle.

Bearish momentum remains strong, with ZEC falling 36% in the last week from $572 to an intra-day low of $351. Losing the $344 support could trigger a deeper drop toward $300, extending the altcoin’s steep correction.

If market conditions improve, ZEC could attempt a recovery. A rebound toward $400 would be the first sign of renewed strength. Breaking this barrier is essential for a move toward $442, which would invalidate the bearish thesis and restore bullish sentiment.

Read original story Why Is The Crypto Market Down Today? by Aaryamann Shrivastava at beincrypto.com