Nearly half a trillion dollars has been erased from the global cryptocurrency market in less than a week, as an aggressive selloff led by Bitcoin rattles digital asset investors.
Data from CoinGecko show that the total crypto market capitalisation has plunged by about $467.6 billion since January 29, underscoring the scale of the latest rout. Bitcoin, the world’s largest cryptocurrency, tumbled on Tuesday to its lowest level since the re-election of U.S. President Donald Trump in November 2024, a period that had initially sparked optimism over a more crypto-friendly administration.
The flagship digital asset slid to a 15-month low of $72,877 in U.S. trading before staging a modest rebound. As of 6:05 a.m. in New York on Wednesday, Bitcoin was changing hands at around $75,900, though market sentiment remained fragile.
Despite supportive signals from the White House and growing institutional adoption, Bitcoin has now fallen roughly 40 per cent from its record high reached in early October. The downturn follows a wave of forced liquidations on October 10 that wiped out about $19 billion in leveraged crypto positions, a shock from which the broader market has struggled to recover.
Commenting on the trend, Alex Kuptsikevich, Chief Market Analyst at FxPro, said the recent price pattern suggests persistent weakness. “Although there has been some rebound since the start of Wednesday, the sequence of lower local highs and lows indicates that selling on the rise prevails in the markets,” he noted.
The crypto slump comes amid a turbulent week in global financial markets, with sharp swings also recorded in gold and silver prices. While precious metals attracted renewed buying interest after recent declines, cryptocurrencies failed to draw similar safe-haven demand. Bitcoin and U.S. equities both weakened as rising geopolitical tensions between the United States and Iran pushed investors toward traditionally safer assets.
Bitcoin’s failure to hold steady during heightened global uncertainty has also reignited debate over its status as “digital gold.” Critics argue the latest downturn shows the asset behaves more like a speculative investment than a hedge. Investor Michael Burry warned this week that Bitcoin has been exposed as a purely speculative instrument, lacking the defensive qualities of precious metals.
Market data further highlight the severity of the selloff. In the past 24 hours alone, more than $700 million in bullish and bearish crypto bets were liquidated in the perpetual futures market. Since January 29, total liquidations have exceeded $6.67 billion, according to CoinGlass.
Investor appetite for U.S.-listed Bitcoin exchange-traded funds (ETFs) has also been uneven. After recording about $562 million in net inflows on Monday, the group saw $272 million in outflows on Tuesday, based on data compiled by Bloomberg.
Michael Novogratz, Chief Executive Officer of Galaxy Digital, said the recent pullback signals a shift in investor psychology. Historically, he noted, many holders showed a near-unshakeable conviction in Bitcoin. “There’s been a tremendous amount of almost religious belief in holding on to Bitcoin no matter what,” he said during an earnings call. “Somehow that fever broke, and you started seeing some selling.”
