The cryptocurrency market has suffered a sharp downturn, shedding 7% of its total value to approximately $2.77 trillion.
Bitcoin, the leading digital asset, fell to around $82,200 despite maintaining a 58.2% market dominance. Ethereum tumbled closer to the $2,000 mark, while other major coins like Solana and XRP saw similar declines.
The sell-off triggered over $616 million in liquidations within 24 hours, with Bitcoin alone accounting for $231 million as long traders faced heavy losses.
Analysts have linked the market dip to recent remarks by Donald Trump, who warned that his proposed budget cuts and trade tariffs could lead to short-term economic hardship. This has heightened investor caution, evoking memories of the 1980s market instability caused by former Federal Reserve Chairman Paul Volcker’s anti-inflation measures.
With economic uncertainty looming, analysts warn that crypto markets may face further volatility.
