Crypto Market Slump: Total Value Drops by $467 Billion
The total market value of all cryptocurrencies has dropped by $467.6 billion since January 29, according to data from CoinGecko. This massive sell-off wiped nearly half a trillion dollars from the market, pushing the total valuation below its previous 2025 low.
This decline occurred on Wednesday as a major Bitcoin sell-off gained momentum. Previously, the market hit a low point on April 7, following news of global trade tariffs from the Trump administration.
Bitcoin Shows Small Rebound After Recent Lows
Despite the government’s pro-crypto stance, the market has struggled to stay steady. Bitcoin rose slightly by 1.31% to $76,681.72 on Wednesday, recovering slightly after hitting a 15-month low of $72,877 just a day earlier.
Even with this small bounce, Bitcoin’s performance has been a challenge:
- Year-to-date: Down 13% so far in 2026.
- From peak: Down nearly 40% from its record high of over $126,000 set in October.
Trader Liquidations Increase Price Pressure
Analysts told Bloomberg that many traders tried to “buy the dip,” hoping Bitcoin would climb back above $80,000. However, as prices continued to fall, those positions were forced to close (liquidated). This created a cycle of selling that put even more downward pressure on the price.
Key Factors Behind the Market Decline
Several global and economic factors are contributing to this instability:
- Precious Metals Volatility: Investors are anxious following sharp price swings in gold and silver. Both metals saw record lows recently after a long period of growth.
- Geopolitical Tensions: Renewed conflict between the U.S. and Iran has made investors nervous. In times of uncertainty, many people move their money into more stable, traditional assets rather than volatile cryptocurrencies.
- Lack of Positive News: The crypto derivatives market suggests that Bitcoin may remain weak for a while, as there are currently no major “positive catalysts” to drive the price back up.
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