$2.69T crypto market sees 72% decline

The global cryptocurrency market experienced a significant downturn on Sunday, with a 2.02% decline, bringing its total value to $2.69 trillion.

This drop was largely driven by losses in major cryptocurrencies such as Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).

Bitcoin fell below the $83,000 mark, reaching an intraday low of $82,397, while Ethereum dropped by 2.45%.

The trading volume across the crypto market was $47.63 billion, a 34.65% decrease from the previous day.

This substantial decrease in trading activity reflects the cautious sentiment among investors, as 72% of cryptocurrencies were trading in the red.

Ethereum's decline was accompanied by significant losses in other major altcoins.

Cardano (CRYPTO:ADA) led the losses among the top ten assets, falling by 4.7%, followed closely by XRP, which declined by 4.6%.

Meanwhile, Dogecoin (CRYPTO:DOGE) saw a drop of 3.3% over the same period.

Despite the overall bearish trend, some tokens within the TON ecosystem experienced gains following positive news.

Notcoin (CRYPTO:NOT) surged by 15.07%, and TON gained 14.69% after Pavel Durov’s passport was returned by French authorities.

The derivatives market also saw significant activity, with $159.57 million in positions liquidated, predominantly long bets.

Bitcoin and Ethereum longs accounted for $28.53 million and $25.75 million of these liquidations, respectively.

As the market navigates these challenges, investors are closely watching macroeconomic indicators and regulatory developments.

The upcoming Federal Reserve policy meeting is expected to play a crucial role in determining the direction of the crypto market, as interest rate decisions can impact risk assets like cryptocurrencies.

In this volatile environment, experts emphasise the importance of cautious investment strategies.

"Good risk management is key in such uncertain times," one analyst noted.

Despite the current downturn, some analysts remain optimistic about Bitcoin's long-term potential, citing its historical ability to rebound from significant declines.

The crypto market's correlation with traditional equities and its response to geopolitical tensions further complicate the outlook.

Investors are advised to remain vigilant and adapt their strategies according to unfolding economic and regulatory news.