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The global cryptocurrency market has suffered a major setback after Bitcoin plunged sharply, wiping about $2 trillion off total crypto value. The sell off followed a wider decline in tech stocks and fading investor confidence in risk assets.
As markets turned volatile, traders rushed to exit positions, pushing Bitcoin to its lowest level in more than a year.
Bitcoin Drops to Lowest Level Since October 2024
Bitcoin, the world’s largest cryptocurrency, fell to a low of $63,295, its weakest price since October 2024. At the same time, the asset dropped more than 12 percent in one day, marking its biggest single day decline since late 2022.
The fall came as global investors pulled back from risky assets. Pressure from falling technology stocks and movements in precious metals also added to the negative mood across markets.
$1 Billion in Positions Liquidated
Because of the sharp drop, about $1 billion worth of Bitcoin positions were liquidated within 24 hours, according to data from CoinGlass.
Liquidations happen when leveraged traders are forced out of the market as prices fall quickly. As a result, selling pressure increases and pushes prices even lower.
Sell Off Spreads Across Crypto Market
The Bitcoin crash did not happen alone. Instead, the sell off spread across the wider crypto market. Many major digital assets followed Bitcoin lower as investors reduced exposure to volatile investments.
Market analysts say weak risk appetite and global stock market pressure played a major role in the sudden downturn.
What This Means for Crypto Investors
The latest crash highlights how sensitive cryptocurrencies remain to global financial trends. When stocks fall and uncertainty rises, crypto assets often face heavy selling.
For investors, the move serves as a reminder that digital currencies can experience sharp swings in a short period of time.
Conclusion
With Bitcoin falling to around $63,000 and nearly $2 trillion erased from crypto markets, confidence has taken a hit. As liquidations rise and risk appetite weakens, traders are now watching closely to see whether Bitcoin can stabilize or face more pressure in the coming days.
