Why Is Crypto Down After the U.S. Open? The Dec. 12 Bitcoin Drop That Looked Like a Hit

The selloff window that made the crypto market look controlled

Bitcoin was trading near the low $93,000s, then slid below$90,000 soon after the cash session began. A fast drop after the open is not just scary. It also creates a story in people’s heads because it lines up with a known time of day.

Altcoins fell at the same time. Ether led the downside, and many liquid tokens dropped in quick steps. That is what a forced move looks like when too many traders are positioned the same way.

The first pressure came from U.S. stocks, not crypto

The crypto market did not start this move. The first weakness showed up in U.S. stocks tied to AI, chips, and data centers, which have been a key risk trade this year.

Broadcom’s post‑earnings drop hit the chip complex, as reported by Business Insider. Oracle added to the stress as the market re‑priced the speed of the AI payoff, as reported by The Guardian.

When this part of the stock market sells off, Bitcoin often moves with it. Many funds hold both trades. When they cut risk, they sell what is liquid.

The $90,000 level where leverage broke

The speed came from leverage. Leverage means a trader borrows money from an exchange to take a bigger position than their cash. It can boost gains, but it also creates forced selling when price moves the wrong way.

When a leveraged position runs out of margin, the exchange closes it automatically. That forced close is a liquidation. Liquidations add real market sell orders, and those orders can push price into more liquidations.

On Dec. 12, $90,000 mattered because it is a round number where many stops and liquidation levels cluster. Once Bitcoin broke it, the move started feeding on itself.

The setup that kept a “planned hit” feeling alive

Even when a move is mostly mechanical, it can still look planned. Round numbers are visible targets. Liquidity is often thin between levels. A push into a stop zone can trigger a chain reaction.

This week also had a key access change in the background. Vanguard quietly reopened trading in many third‑party crypto ETFs for clients. That does not cause a dump by itself, but it can increase the amount of hedging and fast flow around the U.S. open.

What the data supports about manipulation

A true “one desk did it” event usually leaves a clean footprint. You would expect one venue to stand out, or a clear sign of fresh short pressure that is out of line with the rest of the market.

We do not see a single, simple footprint that explains the whole move. The cleaner fit is this sequence: U.S. risk stocks broke first, Bitcoin followed, and liquidations did the damage once $90,000 failed.

That still leaves room for aggressive trading around obvious levels. It just does not require one hidden actor controlling the entire crypto market candle.

ETF flows matter, but they run on a slower clock

Spot bitcoin ETF flows can shape the trend over days and weeks. They are a poor tool for explaining a minutes‑long flush that is driven by liquidations.

If you want the ETF angle that investors keep bringing up, compare this move with our BlackRock flow breakdown: “BlackRock ETF IBIT Moves $200M in Bitcoin: Red Flag or Buy-the-Dip?”.

The macro backdrop that matters after the flush

After a liquidation move, the next question is whether the market finds support. That is where macro and liquidity matter more than the candle that started the day.

For the bigger setup on why liquidity can matter for Bitcoin over weeks, see our Fed bill‑buying explainer: “Fed to Buy $40B in T‑Bills: What It Signals for Bitcoin Liquidity (and Why It’s Not QE)”.

Bottom line: why is crypto down today

The crypto market dropped after the U.S. open because U.S. risk stocks weakened first, then Bitcoin followed. The fall turned into a fast flush because leverage was crowded near $90,000 and liquidations forced more selling.

That is why the move looked “pushed” at first. The timing and the level were real. The driver that best fits the data is simpler: risk selling plus a leverage trap.