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>>The cryptocurrency market has suffered a massive downturn, losing $400 billion in value within a single day.

The cryptocurrency market has suffered a massive downturn, losing $400 billion in value within a single day.

crypthub

1 day ago

Market Capitalization Decline

The cryptocurrency market experienced a significant downturn, losing approximately $410 billion in market capitalization within 24 hours. This drastic drop reduced the total value from $4.15 trillion to $3.74 trillion, marking one of the most substantial declines in 2025. Major cryptocurrencies such as Bitcoin and Ethereum saw considerable losses during this period. Leveraged long positions also faced over $5.6 billion in liquidations.

Geopolitical and Trade Concerns

Increased macroeconomic and geopolitical uncertainty prompted investors to reduce risk exposure, contributing to the market selloff. The United States’ announcement of tariffs on Chinese technology imports intensified fears of a prolonged trade conflict. Export restrictions and trade licensing requirements further deteriorated market sentiment. A canceled meeting between presidents also fueled additional anxieties.

Currency Strength and Regulatory Impacts

The U.S. dollar index surged to its highest level since early 2024, indicating a global flight to safety. The Securities Exchange Commission's postponement of spot ETF approvals, linked to the government shutdown, added to the downward pressure. These delays hindered potential institutional investment and dampened previous optimism.

Altcoin Performance

Several major altcoins also experienced significant declines in value. BNB dropped 14%, XRP lost 14%, and Solana slid 16% during this period. These losses reflect a broader market correction driven by external factors and regulatory uncertainties.