The global cryptocurrency market has suffered a major blow, with nearly 2 trillion dollars wiped out after Bitcoin fell sharply below the 65,000 dollar mark. The sudden drop triggered panic selling across the market, as investors pulled back amid growing uncertainty in global financial conditions.
Bitcoin slid to nearly 60,000 dollars, its lowest level since October 2024. This marked its steepest single day decline since 2022. Analysts say the fall was driven by weak risk appetite, rising interest rate concerns, and increased volatility in traditional markets. As Bitcoin leads the crypto sector, its decline quickly spread to other digital assets.
Ether also recorded heavy losses, falling more than 10 percent in a single session. Other major cryptocurrencies including Solana, Binance Coin, and XRP followed the downward trend. The overall market capitalization of cryptocurrencies dropped sharply, erasing gains made earlier this year.
Market experts believe the selloff was intensified by large liquidations of leveraged positions. Data from crypto analytics firms shows billions of dollars worth of positions were liquidated within hours, adding pressure to prices. Regulatory uncertainty in key markets and concerns over tighter monetary policies have also weighed on investor sentiment.
Despite the sharp fall, some analysts view the correction as part of a broader market cycle rather than a long term collapse. They note that crypto markets remain highly volatile and sensitive to macroeconomic signals. However, confidence among retail investors has taken a hit, with many now waiting on the sidelines for clearer direction.
As markets remain unstable, traders are closely watching upcoming economic data and central bank signals for clues on where crypto prices may head next.
