Crypto market crash wipes out billions in dramatic single-day plunge | Fox Business
Crypto prices dropped sharply this week. The fall hit every major coin. Bitcoin led the slide. It lost more than one third of its value from its peak in October. Traders saw prices fall fast early Friday. CoinGecko data showed bitcoin touching $81,919. The price dropped more than 10 percent in 24 hours. This was the lowest level since April.
Bitcoin had reached a record in early October. The price broke $126,000 for the first time. Investors felt confident at that point. The mood changed within weeks. Bloomberg reported that the current month is likely to be the worst since June 2022. That period was painful for the industry. Many major tokens fell and several projects folded. The current drop revived old questions. Can crypto stand as a long term store of value. Many users entered the market with that belief. The market now tests that belief again.
The drop is not limited to bitcoin. Traders sold most major coins. The global market value of all crypto assets fell almost $400 billion in one week. CoinGecko data showed the market near $3 trillion on Friday morning. The fall erased gains made over months. Analysts watched the chart closely. Many want to know whether selling slows soon. No one has given a clear signal yet. Prices are still moving fast.
Bob Elliott, CEO of Unlimited Funds, spoke Friday morning. He said the bitcoin chart looks similar to the recent weakness in stock prices. He added that crypto moves are far more extreme. This creates pressure on investors in both markets. Many consumers invest in stocks and crypto at the same time. Fast loss in both can affect confidence sharply.
Crypto trading volume surged during the drop. Many traders closed their positions. Others bought coins at lower prices. Exchanges saw heavy orders all morning. Some platforms showed slight delays. Many investors looked for clues from broader markets. They tracked inflation, interest rate data, and global stock indexes. They wanted to see whether these pressures link to the crypto sell off. Markets remain fast and unpredictable.
Bitcoin has experienced large crashes in the past. During 2022, the price collapsed after several major platform failures. That period drove many holders away. The market later recovered as buying returned. The present wave is now viewed in comparison. Analysts note that bitcoin still trades far above lows set in past crises. They also note that investors now treat bitcoin more like a mainstream asset. This means broader economic pressure can pull bitcoin down faster. It also means recovery may tie more to global financial trends than internal crypto stories.
New investors who entered during price highs are likely facing losses today. Many long term holders continue to track the market with patience. They point to past recoveries. Short term traders treat the price action as a chance to make quick profits. Both groups keep volume high. The market remains volatile, and the coming week will likely show whether prices stabilize or continue to fall.
Large firms that hold considerable crypto amounts will face scrutiny from investors. Public companies that list digital assets on their books may report visible balance changes. This could lead to stronger reactions in their stock prices. Asset managers will also evaluate their exposure. Some funds may trim holdings to limit drawdowns. Others may add positions if they believe prices represent value.
The global market waits for the next data points. Price direction may depend on weekend trading. Monday’s session could set the tone for the coming month. Many traders watch for signs of support levels. Some watch for price rebounds. The next few days may show whether this is a short shock or the beginning of a longer decline.
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