The global cryptocurrency market is facing strong selling pressure. The total crypto market capitalization has dropped about 3.5%, now hovering around $2.25 trillion.
Major cryptocurrencies have also seen notable losses:
Bitcoin → down over 3%, trading near $65,549
Ethereum → down about 5%
BNB → down 3.7%
Solana → down nearly 7%
XRP → down around 4%
This is not just a typical red day in crypto. Several major economic and market factors hit at the same time, triggering the sharp decline.
1. Global Economic News Triggered Market Fear
The first shock came from macroeconomic developments. announced plans to raise global tariffs from 10% to 15%, citing balance-of-payments concerns.
This announcement created immediate market reactions:
Renewed fears of a global trade war
Investors moving away from high-risk assets
A rapid “risk-off” sentiment across financial markets
Since cryptocurrencies are generally viewed as high-risk assets, they tend to react quickly during global economic uncertainty. Bitcoin’s price dropped sharply soon after the announcement.
2. Massive Liquidations Accelerated the Drop
The market decline intensified due to large-scale liquidations in leveraged trading.
According to crypto analyst :
Bitcoin fell below $65,000 shortly after the news
Around $461 million was liquidated across the market
More than 134,000 traders were wiped out
About 93% of liquidations were long positions
Within just four hours, Bitcoin saw nearly $193 million in liquidations.
The largest single liquidation was a $61.5 million position on.
When highly leveraged positions are forced to close, prices often fall faster than they would under normal market conditions.
3. Investor Sentiment Turned Strongly Negative
Blockchain analytics firm reported that:
Bitcoin dropped about 4.5% within two hours, reaching around $64,200
Open interest fell sharply to about $19.5 billion
This is less than half of its 2026 peak of $38.3 billion
Market sentiment also shifted rapidly. Negative sentiment surged to a two-week high, and the Fear & Greed Index moved into the “Extreme Fear” zone, signaling growing panic among investors.
4. Concerns About a Larger Market Shift
Some analysts warn that the current decline may be part of a broader trend:
Bitcoin is now roughly 49% down from its peak
Over $1.2 trillion in market value has been wiped out in about 139 days
No significant relief rally has appeared so far
This unusual price behavior has raised questions about whether structural changes are happening in the crypto market.
What Could Happen Next?
Bitcoin has now lost the key $65K support level, which increases downside pressure. The current market weakness is driven by a combination of:
Global economic uncertainty
Heavy liquidation of leveraged positions
Rising investor fear
However, historically, extreme fear and large liquidation events have often marked short-term market bottoms. If panic selling slows and Bitcoin regains the $65K–$66K range, the market could stabilize.
For now, the next move will depend on how global economic conditions evolve and whether investor confidence returns in the coming days.
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