Crypto market sheds $1.3 trillion amid bitcoin slide below $77,000
A sharp decline in bitcoin and major cryptocurrencies has wiped an estimated $1.3 trillion from the global digital asset market, triggering fresh concerns over a possible broader financial downturn.
The price of bitcoin fell below $77,000 on Sunday, down more than 10% from a record high of nearly $90,000 reached last week.
Other major tokens—including ethereum, XRP, solana and dogecoin—recorded even steeper losses of around 15% over the past 24 hours.
Bitcoin has recently lost the key $79,000 to $80,000 support level, which it had managed to hold for the past month.
The downturn follows heightened volatility in global markets, triggered by President Donald Trump's announcement of sweeping global tariffs.
The so-called "Liberation Day" tariffs have stoked fears of a crisis scenario, with Wall Street reeling and crypto traders on high alert.
The declines followed a brutal week for global equities. US stocks posted their worst two-day loss since 2020, after the announcement of broad tariffs sparked fears of a trade war and global recession.
The S&P Global Broad Market Index reported a $7.46 trillion loss in market value over two sessions, with US stocks accounting for $5.87 trillion of that.
'Investors are fleeing risk assets across the board,' said an analyst at CoinGlass. 'Crypto, which trades 24/7, was hit over the weekend by heavy liquidations.'
CoinGlass data showed that bitcoin saw over $247 million in long liquidations in the last 24 hours, as traders betting on price gains were forced to sell to cover their losses. Ether followed with $217 million in long liquidations.
Bitcoin, often viewed as a proxy for risk appetite and tech stocks, initially resisted the global selloff last week, trading in the $82,000 to $83,000 range. But the downturn has now caught up, with no major crypto-specific catalyst in sight.
Bitcoin is now down 15% since the start of 2025.
Investor focus is now turning to a potential policy response from the US Federal Reserve. Expectations have risen that the central bank may cut interest rates to head off a possible recession, a move that could inject further liquidity into the financial system.
Looking ahead, analysts say a rebound in bitcoin could hinge on political signals or emergency measures.
A potential shift in Trump's stance or emergency intervention by the Federal Reserve are the two things that could help the bitcoin price climb back over $80,000.
The losses mark the largest market drawdown for cryptocurrencies since the start of the year and come as Congress prepares to debate potential regulatory changes to the digital asset sector.
Cryptocurrency prices over last 24 hours (CoinMarketCap)
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