- More than £1.7 trillion ($2.12 trillion) erased from the crypto market.
- Bitcoin falls to around £47,000 ($60,000), its lowest in over a year.
- Institutional selling and global risk fears weigh heavily.
Bitcoin has suffered a sharp sell-off, dragging the wider cryptocurrency market into what appears to be one of its steepest single-day declines in recent years.
More than £1.7 trillion ($2.12 trillion) in market value has been wiped out globally. Bitcoin, the world’s largest cryptocurrency, fell by roughly 15–20 per cent during the slump, at one stage slipping to around £47,000 ($60,000), a level not seen in over a year. Other major tokens, including Ether and Solana, also dropped heavily. Shares of crypto-linked companies and investment funds came under pressure as well.
The correction is being described as the most significant since the period after Donald Trump’s election, when markets were adjusting to political and regulatory uncertainty. While Bitcoin has seen several boom-and-bust cycles since 2021, the scale of this fall stands out given how much larger and more institutionalised the market has become.
A market in risk-off mode
There does not appear to be a single trigger behind the sell-off. Analysts suggest it may be the result of several pressures converging at once.
Global markets are currently in what traders call a risk-off phase. Investors are trimming exposure to higher-risk assets amid concerns over economic growth, inflation and interest rates. In such an environment, cryptocurrencies often face sharper corrections because they are still widely viewed as speculative.
Weakness in global equities, particularly technology stocks, seems to have added to the strain. Over the past two years, crypto assets often moved in step with high-growth tech shares during the AI-driven rally. As valuations in that sector cool, digital assets appear to be following a similar path. Bitcoin, once seen as detached from traditional markets, now looks more closely tied to them.
Institutional investors may also be playing a bigger role in this downturn than in previous cycles. A recent CoinShares report pointed to sustained outflows from Bitcoin-linked investment products, including exchange-traded funds. As larger investors exit positions, liquidity can thin out, making price swings more severe.
Once Bitcoin breached key technical support levels it had been hovering around for weeks, automatic selling and the liquidation of leveraged positions accelerated the fall. In crypto markets, where leverage remains common, falling prices can quickly trigger margin calls, forcing further sales and amplifying losses.
Panic or positioning for recovery?
The speed of the decline unsettled many investors, with trading volumes surging as prices slid. Some market participants appear to have exited in response to fear and uncertainty.
At the same time, not everyone is stepping away. Some long-term holders are said to be accumulating at lower levels, betting that prices could stabilise if broader economic conditions improve.
Avinash Shekhar, co-founder and chief executive of Pi42, reportedly said in a news report that the £45,000–£47,000 ($58,000–$60,000) range remains a technically significant support band. A stable hold in this region, he suggested, could gradually restore confidence and open the door to a measured recovery.
The fallout may extend beyond investors. Crypto exchanges, trading platforms and blockchain start-ups could face pressure if trading activity slows and funding tightens. Smaller businesses with weaker fundamentals may struggle, though some analysts argue that downturns can also flush out excess speculation and encourage a more disciplined market.
India remains one of the most active crypto markets globally, with a large base of retail investors and a growing ecosystem of exchanges and developers. The latest slide serves as a reminder that as digital assets become more mainstream, they are also becoming more exposed to the same forces that move traditional markets.
Whether this marks a short-term correction or a longer period of consolidation may depend on global monetary policy, institutional positioning and overall investor confidence in the months ahead. For now, volatility appears to remain firmly embedded in the crypto story.
