Cryptocurrency markets faced a severe downturn this week, shedding approximately $390 billion in value as Bitcoin and Ether experienced their largest weekly declines since the FTX collapse in November 2022. Bitcoin fell 17.3% to trade just above $60,000, while Ether dropped 22% to around $1,550. The total market capitalization now stands just above $2 trillion, significantly down from its peak of nearly $4.2 trillion in October.
The selloff was exacerbated by several factors, including the first Bitcoin sale by Strategy in nearly four years, which unsettled investors. Additionally, outflows from Bitcoin ETFs and a shift in investment focus towards AI-related stocks contributed to the downturn. The market was further pressured by a stronger-than-expected U.S. jobs report, raising concerns about potential Federal Reserve rate hikes. Crypto derivatives traders also faced significant losses, with $7 billion in leveraged positions liquidated during the week.
Cryptocurrency Markets Suffer $390 Billion Loss Amid Major Selloff
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