By Bitcoin, the flagship cryptocurrency, has tumbled by 10% in a single day, reflecting the bearish pressure currently weighing on the broader crypto market. The decline is part of a larger trend of risk aversion among investors, driven by fears of economic instability and tighter regulations.
Market analysts suggest that the sell-off was exacerbated by large-scale liquidations in the derivatives market, where leveraged positions were wiped out as Bitcoin breached key support levels. “The market is in a state of panic,” said one trader. “We’re seeing a domino effect as investors rush to exit their positions.”
The downturn has also dragged down other major cryptocurrencies, with Ethereum and Solana both losing over 8% of their value. Despite the bleak outlook, some experts believe this could be a buying opportunity for long-term investors.
“Bitcoin has a history of bouncing back from steep declines,” said a crypto strategist. “While the short-term outlook is uncertain, the long-term potential remains intact.”