Crypto Market
A sharp decline in bitcoin and other major cryptocurrencies has led to a staggering $1.3 trillion loss in the global digital asset market, raising fresh concerns about a potential broader financial downturn.
Bitcoin, which had recently reached a record high near $90,000, dropped below the $77,000 mark on Sunday, representing a loss of more than 10% from its peak. Other major tokens, including ethereum, XRP, solana, and dogecoin, experienced even more significant declines, losing about 15% in value over the past 24 hours.
Bitcoin, in particular, had managed to hold a crucial support level of $79,000 to $80,000 for the past month, but this level was recently breached, leading to further market instability.
The downturn in the cryptocurrency market follows a period of heightened volatility in global financial markets, sparked by US President Donald Trump’s announcement of sweeping global tariffs. These tariffs, known as the “Liberation Day” tariffs, have caused fears of a looming financial crisis, with Wall Street reeling and crypto traders on high alert.
The global equity market suffered significant losses as well. US stocks recorded their worst two-day performance since 2020, with the announcement of the tariffs fueling fears of a trade war and a global recession.
The S&P Global Broad Market Index reported a $7.46 trillion loss in market value over two sessions, with US stocks accounting for $5.87 trillion of that decline.
As a result, investors have been fleeing risk assets across the board. Cryptocurrencies, which trade 24/7, were hit particularly hard over the weekend, with heavy liquidations triggering further losses.
CoinGlass data revealed that bitcoin saw more than $247 million in long liquidations within just 24 hours, while ether faced $217 million in liquidations.
Although bitcoin initially resisted the global selloff last week, trading between $82,000 and $83,000, it eventually succumbed to the broader market downturn.
As of now, bitcoin has lost 15% of its value since the start of 2025, and there appears to be no immediate catalyst for recovery within the crypto market.
Looking ahead, all eyes are now on potential policy responses from the US Federal Reserve. There is growing speculation that the central bank might cut interest rates to prevent a recession, which could provide a boost to liquidity in the financial system.
For bitcoin to rebound, analysts suggest that political changes or emergency interventions, such as a shift in Trump’s stance on tariffs or decisive actions by the Federal Reserve, might be necessary to restore investor confidence and push the price of bitcoin back above the $80,000 mark.
The current losses represent the largest market drawdown for cryptocurrencies in 2025 so far, and they come as US lawmakers prepare to debate potential regulatory changes that could impact the digital asset sector.
