Crypto Crash : How $250 Billion Vanished Overnight From Bitcoin, Ethereum, and Altcoins Lose Billions in Hours
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The global cryptocurrency market witnessed one of its sharpest declines of 2025, with more than $250 billion wiped off its total market capitalization in less than 24 hours. This steep fall sent shockwaves through the digital asset space, shaking investor confidence and reigniting debates around market volatility and regulatory uncertainty.
According to CoinMarketCap data, the total market capitalization dropped from around $2.15 trillion to $1.9 trillion on Thursday, marking one of the most dramatic single-day losses of the year. Bitcoin, which makes up nearly half of the market, fell by over 7%, trading below $57,000 for the first time in months. Ethereum also slipped under the $2,300 mark, while altcoins like Solana, Avalanche, and Dogecoin recorded double-digit losses.
Analysts attribute the crash to a combination of factors rising U.S. Treasury yields, renewed fears of stricter global crypto regulations, and mass liquidations in the derivatives market. Over $1.2 billion worth of leveraged positions were liquidated across major exchanges, further accelerating the sell-off.
“The market had been overheated for weeks. This correction, though painful, was long overdue,” said Michael Burton, a senior analyst at CryptoQuant. “Investor sentiment shifted quickly once Bitcoin failed to hold key support levels, leading to a cascading effect across the market.”
Adding to the pressure, rumors of tougher enforcement actions from U.S. and European regulators fueled panic among retail traders. Many exchanges also reported slower withdrawals and network congestion as investors rushed to convert their digital holdings into stablecoins.
Despite the chaos, long-term investors remain cautiously optimistic. “These are typical crypto cycles,” said Ada Nwosu, a blockchain researcher based in Lagos. “When you zoom out, volatility is part of the ecosystem’s DNA. The technology and adoption curve are still trending upward.”
Stablecoins like USDT and USDC saw a spike in trading volume as traders sought safety amid the market storm. On-chain data also showed increased activity on decentralized exchanges (DEXs), as users moved assets away from centralized platforms.
By midday Friday, the market appeared to stabilize slightly, though analysts warn that more short-term turbulence may follow. Investors are now watching Bitcoin’s next move closely, as its performance could determine whether the broader market stages a recovery or faces further correction.
For now, the $250 billion wipeout serves as another reminder of crypto’s unpredictable nature where fortunes can shift dramatically within hours, and where resilience often separates the believers from the fearful.
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