Panic selling amid growing economic fears surrounding Trump’s controversial tariffs accelerated in the past 12 hours, resulting in massive losses for BTC and altcoins alike. The cumulative market capitalization of all digital assets has dumped to a multi-month low of under $2.5 trillion, according to CoinGecko.
BTC Slumps Hard
The primary cryptocurrency experienced a highly volatile trading week recently, surging from $81,500 on Monday to $88,500 by Wednesday. However, as Trump’s escalating trade war elicited responses from numerous countries, panic, uncertainty, and fear gripped the market once more.
BTC began to rapidly lose value, and despite defending the $80,000 support level on several occasions, it ultimately succumbed to the pressure on Sunday evening. After a relatively quiet Saturday, Bitcoin slumped to a monthly low of $77,000 during the Asian trading session on Monday morning.
The landscape worsened in the following hours as European markets opened, with BTC hitting a low of just over $74,000, marking its worst price point in approximately five months. More volatility is anticipated once the US markets open, as futures have shown a dramatic decline.
Currently, Bitcoin’s market capitalization has plummeted to $1.5 trillion, despite a slight recovery to $76,000. Its dominance over altcoins has increased significantly to 60.7%, as many altcoins continue to suffer heavier losses.
Alts in Freefall Mode
As highlighted earlier, the situation surrounding altcoins is severely grim. The accompanying graph demonstrates that very few have managed to avoid single-digit price declines, with BNB being among the exceptions. Meanwhile, assets like ETH and XRP have experienced declines ranging from 8% to 15%.
Among the most significant losses are KCS (-22%), LTC (-20%), AAVE (-19%), MOVE (-17.5%), and UNI (-17.5%), among others. This steep crash has wiped out almost $300 billion from the total crypto market cap in just one day, reducing it below $2.5 trillion, according to CoinGecko.
The implications of this sudden downturn are far-reaching, likely prompting investors to reevaluate their positions and strategies in the face of ongoing economic instability.
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