Crypto Market Suffers $200B Crash as Macro Fears Spark Sell-Off
The cryptocurrency market capitalization has experienced a significant decline, with over $200 billion wiped out in the past 24 hours. The total global crypto market cap is currently approximately $2.95 trillion, representing a decline of over 5% on the day.
The recent market downturn, particularly the drop of Bitcoin (BTC) below $85,000 to a two-month low, appears to be a broad market sell-off driven by several macroeconomic and technical factors.
Macroeconomic Pressures: The U.S. Federal Reserve's decision to hold interest rates unchanged (between 3.50% and 3.75%) and a hawkish stance have dampened investor appetite for riskier assets like cryptocurrencies.
Institutional Outflows: Bitcoin spot Exchange-Traded Funds (ETFs) have recorded significant net outflows, totaling over $1.1 billion in weekly exits, suggesting institutional investors are repositioning capital.
Capital Rotation: There has been a discernible shift of capital away from crypto into precious metals like gold and silver, which have seen price surges and high trading volumes.
Liquidation Event: The sharp price decline triggered massive liquidations of leveraged trading positions, with over $1 billion in value wiped out for traders holding long (buy) positions.
