Crypto Market Loses $325 Billion as Bitcoin Drops to $87K – What’s Behind the Selloff?
The global crypto market cap has plunged by over $325 billion since Friday, with Bitcoin tumbling 8% to $87,000. Major altcoins like Ethereum, Solana, and XRP have suffered even steeper losses, exceeding 10-12%.
So, what’s causing this massive market decline? Let’s break it down.
📉 What’s Causing the Crypto Market Crash?
A combination of factors, including liquidity issues, macroeconomic trends, and technical sell-offs, appears to be behind the latest downturn.
🔹 $150 billion in liquidations occurred in just 24 hours, triggering a chain reaction across the market.
🔹 Memecoins & Solana slump – Solana, which recently surged due to memecoin hype, saw a 20% drop in a week, dragging the broader market down.
🔹 Stock market correlation – As the S&P 500 declined, Bitcoin followed, breaking below $98K support, sparking panic selling.
🔹 Bybit hack – A $1 billion crypto hack, one of the largest in history, further shook investor confidence.
🚨 How Did Solana’s Drop Trigger the Market Decline?
Solana has been a key player in recent crypto rallies, with memecoins driving massive hype and trading volume. However, as the memecoin frenzy cooled off, Solana’s price dropped 20% in just a week.
Initially, Bitcoin remained stable, but as Solana’s losses mounted, selling pressure spread across the market, triggering a widespread selloff.
📌 Bitcoin dropped below its $98K support level, leading to increased liquidations.
📌 Ethereum and XRP followed suit, accelerating the market downturn.
🏛️ Citadel’s Crypto Move & Bybit Hack Add to the Chaos
Another factor adding to the market turbulence was Citadel Securities’ rumored entry into crypto. The $65 billion financial giant was reportedly exploring crypto as a liquidity provider, but instead of boosting investor confidence, the news triggered a “sell-the-news” reaction.
Additionally, the Bybit hack—labeled the largest financial heist in history—resulted in over $1 billion in stolen assets. This event shattered investor trust and led to further panic-driven selling.
🔄 Is This a Normal Correction or the End of the Bull Run?
While the crypto market has taken a major hit, analysts aren’t convinced this is the end of the bull cycle.
📊 Market expert “il Capo of Crypto” hinted at a “strong bounce” soon, suggesting this could be a short-term correction rather than a long-term crash.
📊 Similar market pullbacks have happened in the past, only to be followed by even stronger rallies.
💡 What’s Next for Crypto?
🔹 Will Bitcoin recover from this dip?
🔹 Will Ethereum’s weakness drag the market lower?
🔹 Is this just a temporary shakeout before the next rally?
With volatility at its peak, all eyes are on Bitcoin’s next support level and whether the market can stage a rebound in the coming days. 🚀
