The global cryptocurrency market has suffered a staggering blow, losing an estimated $1.3 trillion in value following a sharp plunge in bitcoin and other major digital assets. The sudden downturn has sparked fears of a broader financial crisis as global markets react to fresh economic uncertainty.
Bitcoin led the rout, slipping below $77,000 on Sunday—more than 10% off its all-time high of nearly $90,000 recorded just last week. Major altcoins like ethereum, XRP, solana, and dogecoin fell even harder, posting losses of around 15% over the last 24 hours.
The selloff comes in the wake of President Donald Trump’s controversial “Liberation Day” global tariff announcement, which has rattled Wall Street and added to volatility across asset classes. Analysts say the cryptocurrency market, often seen as a barometer for risk appetite, was hit especially hard due to heavy liquidations and investor panic.
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CoinGlass data revealed over $247 million in bitcoin long positions were liquidated in just 24 hours, with ethereum seeing an additional $217 million in losses. Bitcoin’s failure to hold its $79,000-$80,000 support level—maintained for nearly a month—further accelerated the crash.
While bitcoin initially resisted the global selloff earlier in the week, the broader economic concerns eventually caught up. Investors are now closely watching for a potential policy response from the US Federal Reserve, with some speculating that interest rate cuts could be on the horizon to avert a recession.
For now, hopes of a rebound rest on political shifts or emergency economic measures. With Congress preparing to debate new crypto regulations, the digital asset space is bracing for more turbulence in the weeks ahead.
