One of the most closely watched altcoins in the market, Bitcoin Cash (BCH 4.04%) is a top-15 cryptocurrency by market capitalization that warrants attention. As a Bitcoin fork that is now primarily utilized for payments, those banking on blockchain-based transaction growth to surge over time have looked to Bitcoin Cash to provide potential outsize upside in what has otherwise been a robust bull market rally in digital assets in 2025 (until recently).

Bitcoin Cash

Today’s Change

(-4.04%) $-22.58

Current Price

$536.02

Today, that rally has fizzled, with Bitcoin Cash experiencing a 5.2% decline over the past 24 hours, as of 6:00 p.m. ET.

Let’s dive into what’s driving this move and why investors are increasingly in sell-off mode for nearly every major token today.

Massive liquidation activity is driving today’s price action

Source: Getty Images.

Several key macro drivers are pushing the crypto sector lower today. Those are certainly important to discuss, as the shift in investor sentiment we’ve seen unfold over the weekend has been notable.

With digital assets (and other more speculative assets in various markets) already exhibiting weak price action lately, uncertainty surrounding key U.S. economic data set to be released tomorrow, and lingering concerns about inflation, are sources of pain for millions of investors right now.

However, news that the Bank of Japan hiked its benchmark rate overnight led to some severe volatility in the crypto market overnight and into today (it’s a 24/7 market, after all). That’s because many hedge funds and large money managers who have shorted the Yen directly or indirectly, and used those funds to purchase other assets (mostly U.S. stocks, bonds, and even cryptocurrencies), may have to unwind those bets. If that’s the case, it’s the sort of lower tide that brings all boats lower narrative at play here.

That said, what’s particularly interesting about today’s move in Bitcoin Cash is the extent to which liquidation activity plays into this narrative. Liquidations of leveraged derivatives bets (mostly perpetual futures contracts) are initiated when certain price levels are broken through. Given today’s price action, numerous price levels have been broken, resulting in even steeper declines for risk-on investors than what may otherwise be the case without this leverage.

With approximately $3.1 million of the $3.15 million in total liquidations taking place on the long end of the spectrum today (meaning bulls are getting decimated), there’s little hope right now for a near-term rebound. That’s the story the data appear to be telling today, at least.