Crypto market sheds $500 billion in sell-off

Analysts link the sell-off to geopolitical tensions, currency shifts, and interest rate dynamics rather than crypto-specific structural weaknesses.

Nearly half a trillion dollars vanished from crypto markets in a week as Bitcoin’s sharp decline triggered widespread deleveraging and risk-off sentiment.

Roughly $500 billion has been wiped from the cryptocurrency market over the past week as a Bitcoin-led sell-off accelerated. Total digital asset capitalisation fell by about $467.6 billion since 29 January, reflecting broad risk-off sentiment across global markets.

Bitcoin briefly dropped to a 15-month low of $72,877 before rebounding 1.31% to $76,681.72. The asset remains down 13% year-to-date and nearly 39% below its October peak above $126,000, underscoring sustained selling pressure.

Macro forces are driving the downturn. Escalating US-Iran tensions pushed capital toward traditional safe havens, while currency shifts, interest rate differentials, and tightening liquidity conditions weighed on leverage and stablecoin flows.

Analysts say the decline reflects positioning resets and broader market nervousness rather than a single catalyst.

Near-term outlook remains cautious. Liquidation pressure persists, though key structural supports continue to hold. Technical analysts identify $73,000 as critical downside support, while reclaiming the $77,500–78,000 range would be needed to restore bullish momentum.

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