The cryptocurrency market experienced a significant decline today due to a combination of factors. One of the primary reasons is the broader pullback in risk assets, driven by concerns about the Federal Reserve's monetary policy. Recent strong inflation data has heightened fears that the Fed may continue with tight monetary policies, which negatively affects speculative assets like cryptocurrencies.

Additionally, there were substantial liquidations in the market, with over $140 million worth of long positions being closed out as prices fell. This forced selling exacerbated the downward momentum. Moreover, the cryptocurrency market's correlation with the Nasdaq 100 index, which was also under pressure due to slower-than-expected growth projections for Nvidia, further contributed to the crypto downturn.

This environment of uncertainty and rapid liquidations has led to a sharp drop in prices across major cryptocurrencies, including Bitcoin, Ethereum, and others.