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

The cryptocurrency market has faced a dramatic downturn in under a week, with losses nearing $500 billion in market capitalization, primarily driven by Bitcoin, according to recent data from digital market tracking platforms.

Market Capitalization Decline

Data from the "CoinGecko" platform indicates that the total value of cryptocurrencies has fallen by about $467.6 billion since January 29, representing one of the most significant declines in recent history.

Bitcoin Hits Lowest Price Since Late 2024

Bitcoin's price experienced a notable decrease, dropping to $72,877, its lowest level since the re-election of U.S. President Donald Trump in November 2024. However, it later regained some ground, trading around $76,100 on Wednesday morning in London.

Sell Pressure Amid Institutional Growth

Despite ongoing institutional adoption and political backing for digital currencies, Bitcoin has lost approximately 40% of its value since reaching its peak last October, largely due to extensive liquidations and mounting sell pressure in the market.

Investor Caution Following Key Support Breach

Analyst Rachel Lucas from "BTC Markets" noted that investor sentiment remains cautious and risk-averse, stating that the breach of the $73,000 support level has intensified market anxiety and accelerated selling.

Geopolitical Tensions Impacting Digital Assets

This decline aligns with disruptions in global markets amid rising tensions between the United States and Iran, leading investors to gravitate toward traditional safe-haven assets while cryptocurrencies struggled to maintain their investment appeal during this period.