Bitcoin diving and Galaxy digital crying…
Bitcoin’s brutal sell-off deepened this week as expected in previous post… With the world’s largest cryptocurrency plunging below $74,000 and wiping out all gains made after Donald Trump’s 2024 election victory. On Tuesday, Bitcoin briefly touched $72,500, its lowest level in nine months, signaling a full round-trip from the post-election rally that once pushed prices to a record high near $126,000. The move has rattled investors and reinforced a growing sense of risk aversion across digital asset markets.
The decline comes amid sustained outflows from spot Bitcoin ETFs, weakening trading volumes, and a lack of fresh catalysts to revive bullish momentum. Major cryptocurrencies followed Bitcoin lower, with Ethereum sliding below $2,200, Solana falling toward $93, and XRP dropping to around $1.55. Overall crypto market capitalization sank to roughly $2.6 trillion, its lowest level since April, while sentiment indicators remain firmly in “fear” territory.
Traditional markets offered little relief. U.S. equities also struggled, as the S&P 500 and Nasdaq fell 1% and 2% respectively, highlighting broader concerns around growth and liquidity. Precious metals, by contrast, edged higher, benefiting from renewed demand for defensive assets.
Adding to the gloom, Galaxy Digital reported a $482 million loss for the fourth quarter, sharply reversing a record $505 million profit in Q3. The firm blamed lower digital asset prices, a 40% drop in trading volumes, and $160 million in one-time costs. Despite the setback, Galaxy strengthened its balance sheet, ending the quarter with $2.6 billion in cash and stablecoins. Management remains optimistic, pointing to long-term opportunities, including potential upside from its artificial intelligence initiatives, even as near-term market pressure persists. Are you ready to invest or not yet? Let me know in the comments🧐
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