Cryptocurrency market loses $1.3 trillion as Bitcoin drops below $77,000
A substantial drop in the value of bitcoin and other major cryptocurrencies has caused a massive $1.3 trillion loss in the worldwide digital asset market, sparking worries about a broader financial decline.
Bitcoin’s value plummeted below $77,000 on Sunday, marking a decline of over 10% from its recent peak of almost $90,000.
Other significant tokens like ethereum, XRP, solana, and dogecoin experienced even more significant drops of roughly 15% within the last 24 hours.
Bitcoin recently slipped below the critical support level of $79,000 to $80,000, a level it had managed to maintain for the past month.
This drop comes after increased market volatility caused by President Donald Trump’s revelation of sweeping global tariffs.
These “Liberation Day” tariffs have raised concerns about a probable crisis as Wall Street struggles, and cryptocurrency traders remain vigilant.
The declines followed a tumultuous week for global stocks, with US equities facing their most severe two-day losses since 2020. The broad tariffs announcement triggered fears of a potential trade war and global economic downturn.
The S&P Global Broad Market Index reported a loss of $7.46 trillion in market capitalization over a couple of sessions, with US stocks accounting for $5.87 trillion of that total.
According to an analyst at CoinGlass, “Investors are currently abandoning risky assets across various markets. The cryptocurrency market, which operates 24/7, experienced heavy liquidations over the weekend.”
Data from CoinGlass indicates that bitcoin witnessed over $247 million in long liquidations in the past 24 hours as traders who bet on price increases were compelled to sell to offset their losses. Ether followed with $217 million in long liquidations.
Bitcoin, often seen as a gauge of risk tolerance and technology stocks, initially resisted the global selloff last week, hovering in the range of $82,000 to $83,000. However, the recent downturn has caught up, with no significant crypto-specific catalyst in view.
Since the beginning of 2025, bitcoin has decreased by 15%.
Investors are now looking to the US Federal Reserve for a potential policy response. There are expectations that the central bank may reduce interest rates to prevent a looming recession, a move that could inject additional liquidity into the financial system.
In the future, analysts believe that a recovery in bitcoin’s value might rely on political signals or emergency interventions.
A change in Trump’s position or an emergency action by the Federal Reserve could potentially impact the course of bitcoin and the cryptocurrency market.
