Bitcoin Crash: Extreme Fear Grips Crypto Market as $2 Trillion Wiped Out

The crypto market is in a state of panic as the bitcoin price crashes towards $50,000, with the combined market capitalization of bitcoin, ethereum, XRP, solana, and other cryptocurrencies coming close to $2 trillion for the first time since early February. This marks a significant decline from nearly $3 trillion in March.

Crypto market in free fall

The bitcoin price has lost around 25% over the last month, with Federal Reserve chair Jerome Powell warning of a “critical period.” This has led to a sense of extreme fear among crypto traders, with the Crypto Fear & Greed Index dropping to its lowest level since January 2023.

“The crypto market cap has fallen back below $2 trillion, accelerating its decline and losing over 8%, while many altcoins have suffered double-digit losses within the last 24 hours,” said Alex Kuptsikevich, FxPro senior market analyst.

Fear grips crypto market

The collapse of bitcoin exchange Mt. Gox has also added to the uncertainty, with the rehabilitation trustee making repayments in bitcoin and bitcoin cash to some creditors. This has led to concerns that a large amount of bitcoin could soon be distributed to creditors, potentially leading to a further price drop.

Mt. Gox creditors receive repayments

“Should an additional 200,000 bitcoin—valued at more than $10 billion—hit markets in a short space of time, supply will likely outstrip demand, and we could see the price of bitcoin drop even further,” said Neil Roarty, analyst at investment platform Stocklytics.

Bitcoin price crash sparks fear

The crypto market is bracing for another shock, with traders and analysts warning of a potential further decline in the price of bitcoin, ethereum, XRP, solana, and other major cryptocurrencies.

Crypto market on edge

As the crypto market continues to plummet, one thing is clear: extreme fear has gripped the market, and it’s anyone’s guess what will happen next.