The crypto market has encountered another significant drop, losing about 9.5% of its market capitalization. Leading cryptocurrencies like Bitcoin and Ethereum have shown notable declines in value.
Current State of the Crypto Market
Bitcoin is testing the $83k mark again, with most altcoins trading in the red. The market has lost most of the gains following Donald Trump's US Crypto Reserve announcement.
Impact of the US Crypto Reserve
The US Crypto Reserve announcement initially led to a brief surge in crypto market capitalization to $3.1 trillion. However, in the past 24 hours, it plummeted to $2.6 trillion, falling below its pre-announcement level.
Markets in Economic Changes
The current crash is part of a broader global shift towards safer assets amid increasing economic uncertainty. The Goldman Sachs volatility panic index rose, indicating potential further market pressure.
Current global conditions, including trade wars and economic instability, negatively impact the crypto market, reducing its appeal as a safe asset.
