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The crypto market cap fell by more than 4% in the last 24 hours during a flash crash Bitcoin (BTC) plunges below $67,000 and the top 10 cryptos all suffer significant losses.
BTC saw its price drop by more than 4%, while altcoin leader Ethereum (ETH) lost more than 5% of its value in the past trading day.
Dogecoin (DOGE) was the biggest loser among the top cryptos in terms of market cap with a decline of 9%, closely followed by Avalanche (AVAX) with more than 8%. 
Crypto Flash Crash Caused by Long Term Holders
The sell-off also ended the positive streak Solana (SOL), which fell 7% to trade at $182.37 at 5:50 a.m. EST.
Meanwhile, Binance Coin (BNB) and XRP both fell more than 3%, while Cardano (ADA) fell 6%.
Crypto exchange Bitfinex attributed the decline to long-term holders (LTHs) taking profits after Bitcoin hit new all-time highs. It added that these sales are occurring on a smaller scale than during previous bull market peaks.
Despite the selling pressure from LTHs, analysis using UTXO Age Bands indicates buying activity. This serves as a support level, driven by new investors joining and existing investors increasing their positions, showing that the market can rise even further 📈https://t.co/LJrGTOQ6Y1
— Bitfinex (@bitfinex) April 1, 2024
Analysts at Bitfinex estimate that more than $2.6 billion in profits have been made through on-chain transactions in the past three weeks. About 40% of these profit takings are linked to the LTH group, the exchange said in a blog post.
The US dollar is rising on positive fundamentals
The strength of the US dollar also played a role in the crypto market’s sudden crash after data showed the US manufacturing sector grew in March for the first time since September 2022, according to a Reuters report. report.
Robust consumer spending and stabilizing inflation suggest a potential recovery is underway for several sectors, Bitfinex said.
Dollar Index Chart (Source: Trading view)
Despite the sell-off, crypto presales continue to rise. Although Dogecoin (DOGE) slumped, Dogecoin20 has extended its presale after overwhelming demand surpassed the $10 million mark.
And the new Solana meme coin Slothana ($SLOTH) has raised $5.8 million in just over a week.
SLOTH follows in the footsteps of $SLERF, $BOME, $PUMP and $PUNDU, meme coins that introduced a new launch method on Solana that skips traditional price stages and presale timers where people send $SOL to a token address.
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