Crypto market wipes out over $1 trillion as bitcoin plunges

The global cryptocurrency market has erased more than $1 trillion in just six weeks, raising fresh concerns over volatility, tech valuations and broader financial risks.

Bitcoin has dropped more than 25% from its recent peak, falling to $89,471, while Ethereum and Solana have each lost around one-third of their value. Analysts link the sharp decline to fears of an emerging bubble in the AI sector, rising interest rates and a broader shift away from high-risk assets.

Experts warn that uncertainty will remain high ahead of the upcoming Federal Reserve meeting, which could further influence liquidity and investor sentiment. Still, some strategists believe the current downturn may create opportunities for long-term investors if monetary policy becomes more supportive or if the crypto market stabilizes.