$200 Billion Wiped from Crypto Markets in 24 Hours: What’s Going On?

Nearly $200 billion have been wiped from the cryptocurrency market in a single day, rattling traders across Bitcoin (BTC) and major altcoins.

The sell-off pushed sentiment firmly back into fear territory, reversing optimism that had built earlier this month. Behind the move is a mix of macro anxiety, policy uncertainty, and fading risk appetite, leaving traders to wonder if this is just another volatility shakeout or the start of a deeper reset.

Crypto Markets Slide as Fear Re-Emerges

Data from CoinMarketCap shows total crypto market capitalization falling from roughly $2.98 trillion to $2.79 trillion in 24 hours. The decline dragged Bitcoin, Ethereum (ETH), and large-cap altcoins lower, and broader market indexes followed.

Bitcoin slipped toward $82,000, marking a fresh two-month low and extending a multi-month downtrend. Ethereum also slid below recent support, briefly trading near $2,730. Trading volumes stayed elevated, suggesting the move was driven by active selling rather than quiet drift.

Sentiment reflected the pressure. The Fear and Greed Index dropped to 28, a level typically associated with heightened caution and short-term risk aversion. Historically, readings in this zone coincide with deleveraging and defensive positioning rather than aggressive buying.

Why Macro Pressure Is Driving the Sell-Off

One catalyst gaining attention is speculation around the next U.S. Federal Reserve chair. Reports that former Fed Governor Kevin Warsh could replace Jerome Powell revived concerns about tighter liquidity conditions and a smaller Fed balance sheet.

Crypto has historically benefited from abundant liquidity, rallying when balance sheets expanded, and risk appetite followed. The prospect of that support fading has weighed heavily on speculative assets, including Bitcoin and Ethereum.

Exchange-traded fund (ETF) data reinforces the cautious tone. Spot Bitcoin ETFs recorded net outflows, signaling hesitation among institutional allocators. Though Ethereum-linked products saw modest inflows, the overall picture points to selective positioning rather than broad confidence.

The pullback also coincided with weakness in global risk assets. A sharp drop in major tech stocks, tied to renewed concerns around artificial intelligence (AI) spending, rippled through markets and added pressure to crypto.

For now, the message is that liquidity fears are back in focus and traders are reassessing risk just as volatility returns.

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