Why Is the Crypto Market Dropping? When Will It Recover?
The cryptocurrency market experienced another sharp decline this Sunday, with Bitcoin (BTC) nearing its 2025 low of $80,000. Over the past week, Bitcoin has lost more than 11% of its value, erasing recent gains. Currently, it is trading at $82,196, reflecting a 4% drop in the last 24 hours.
The overall crypto market also took a hit, shrinking by 7% and bringing its total market capitalization down to $2.77 trillion. Several major cryptocurrencies saw significant losses:
- Solana (SOL) and XRP declined by 7%
- Ethereum (ETH) dropped 8%, approaching the $2,000 mark
- Cardano (ADA) and Dogecoin (DOGE) fell by 7% and 9%, respectively
This market downturn led to a massive $616 million in liquidations within just 24 hours. Long traders suffered the most, losing approximately $540 million, while Bitcoin alone accounted for $231 million in liquidations.
Economic Factors and Market Uncertainty
Former U.S. President Donald Trump recently discussed his economic policies on Fox News, addressing tariffs and budget cuts. He acknowledged that these measures could cause short-term economic disruptions but emphasized that they are designed for long-term growth and stability.
Important Disclaimer
This article is for informational purposes only and should not be considered financial, investment, or legal advice. We do not guarantee the accuracy or reliability of the information provided. Any financial decisions based on this content are made at your own risk. It is always advisable to conduct thorough research and consult a qualified financial expert before making investment decisions. Cryptocurrency investments carry risks, and past performance does not guarantee future results. We are not responsible for any financial losses or damages resulting from your actions.