Cryptocurrency Market Sees Significant Decline; Bitcoin Leads Losses of Nearly $500 Billion

The cryptocurrency market has experienced a sharp decline, losing around $500 billion in market capitalization in less than a week, primarily driven by a sell-off in Bitcoin, according to data from digital market tracking platforms.

Market Capitalization Decline

Data from "CoinGecko" indicates that the total market capitalization of cryptocurrencies has decreased by about $467.6 billion since January 29, marking one of the most significant downturns the market has faced recently.

Bitcoin Hits Lowest Level Since 2024

Bitcoin saw a notable drop, falling to $72,877, its lowest price since the re-election of U.S. President Donald Trump in November 2024. However, it partially recovered and was trading at approximately $76,100 on Wednesday morning, London time.

Sell Pressure Despite Growing Institutional Adoption

Despite ongoing political support and increasing acceptance of digital currencies by major institutions, Bitcoin has lost about 40% of its value since reaching a record high in October of last year, attributed to extensive liquidations and rising sell pressure in the market.

Investor Anxiety Following Break of Key Support Levels

Rachel Lucas, an analyst at "BTC Markets," noted that investor sentiment remains cautious and risk-averse, pointing out that breaking below the $73,000 mark has heightened market concerns and accelerated sell pressure.

Geopolitical Tensions Intensify Pressure on Digital Assets

The sell-off coincided with turmoil in global markets, as tensions between the U.S. and Iran escalated, prompting investors to seek refuge in traditional safe assets, while cryptocurrencies struggled to maintain their investment momentum during this period.