The global cryptocurrency market has seen a significant contraction, with over $260 billion wiped from its market cap in just one week. The total market value fell from $2.1 trillion to $1.84 trillion, driven by a combination of rising U.S. bond yields, increased regulatory scrutiny in the U.S. and EU, and ongoing geopolitical tensions. These factors have led to widespread sell-offs across major cryptocurrencies, including Bitcoin and various altcoins, as investors react to the uncertain economic environment. The market's rapid decline highlights the volatility and sensitivity of digital assets to macroeconomic and regulatory developments.