Crypto Market Crash Leaves Investors In Panic Mode As ₹17 Lakh Crore Wiped Out In One Day

Crypto Market Crash Shocks Investors Worldwide

The cryptocurrency market, known for its volatility, has once again reminded investors how quickly fortunes can change. In the last 24 hours, an intense wave of selling has shaken digital asset markets across the globe. A massive amount of wealth vanished in a single day as millions of investors saw the value of their portfolios drop sharply.

What seemed like a strong and unstoppable rally suddenly turned into a steep correction. This crash has not only reduced market capitalization but also deeply affected investor sentiment, pushing the Fear and Greed Index into extreme fear territory. For new investors who entered the market at higher levels, the fall is especially painful and confusing.

In this article, we explain what exactly happened, how much value was wiped out, how major cryptocurrencies like Bitcoin and Ethereum reacted, and what key factors triggered this sudden crash.

Market Capitalization Falls Sharply In Just 24 Hours

According to data from CoinMarketCap, the global crypto market capitalization stood at nearly 3.14 trillion dollars at around 9:30 am on Thursday. Within the next 24 hours, by Friday morning, this figure had dropped to about 2.95 trillion dollars.

This decline of more than 6 percent in a single day erased nearly 0.19 trillion dollars in value. When converted to Indian currency, this loss is estimated at close to ₹17 lakh crore. For perspective, this amount is comparable to the annual budget of several countries combined.

Such a sharp fall in total market value in such a short time reflects the highly speculative nature of cryptocurrencies. It also highlights how quickly investor mood can swing from optimism to fear when markets turn negative.

Short Summary Table

Bitcoin Faces Steep Weekly Decline

Bitcoin, the largest and most influential cryptocurrency in the world, was not spared in this sell off. Instead, it was at the center of the storm.

• In the last 24 hours, Bitcoin prices fell by more than 7 percent.
• The price dropped below 86,000 dollars and was trading near 85,750 dollars at around 9:30 am on Friday.
• Over the last seven days, Bitcoin has corrected by more than 13 percent.

Because Bitcoin often acts as a benchmark for the broader crypto market, a large decline in its price usually triggers more selling across other coins and tokens. Long term investors may see such corrections as part of the usual cycle, but for short term traders and those who entered at peak levels, these price swings can be extremely stressful.

Ethereum, Solana, XRP And Cardano Also See Heavy Losses

The crash was not limited to Bitcoin. Most major altcoins also witnessed sharp declines as selling pressure spread across the entire market.

Some key moves among major cryptocurrencies include:

• Ethereum
  • Declined by around 7.53 percent
  • Trading near 2799 dollars
• Ripple (XRP)
  • Fell by around 7 percent
  • Price near 1.97 dollars
• Solana
  • Dropped by around 7.28 percent
  • Trading near 132 dollars
• Cardano (ADA)
  • Declined by around 7.87 percent
  • Price near 0.42 dollars

Reports indicate that all of the top 100 crypto tokens were in the red during this period. Many of them recorded losses ranging from 10 percent to 20 percent, further amplifying the sense of panic among investors.

Extreme Fear Grips The Market

One of the most watched indicators in the crypto space is the Fear and Greed Index. This index measures overall market sentiment on a scale from 0 to 100. Lower values indicate fear, while higher values indicate greed.

During the recent crash, this index dropped to around 11, which clearly indicates extreme fear. At such levels, most investors are worried about further losses and are more likely to sell rather than buy. This often leads to a self reinforcing cycle in which falling prices trigger more panic selling, which then pushes prices down further.

Why Did The Crypto Market Crash

While the crypto market is known to be driven by news, sentiment and speculation, this sharp decline is not happening in isolation. Several broader economic and financial factors are contributing to this downturn.

1. Rising US Treasury Yields

Yields on US government bonds have been increasing. When yields rise, traditional fixed income investments become more attractive compared to risky assets. This often leads large institutional investors to shift some of their capital out of high risk assets such as crypto and into safer alternatives.

2. Tighter Financial Conditions

Global financial conditions have been tightening. Liquidity in markets is not as abundant as it was during earlier phases of ultra loose monetary policies. When money becomes more expensive or harder to access, speculative segments like crypto tend to feel the pressure faster.

3. Uncertainty Over US Federal Reserve Rate Cuts

Another major factor is the market expectation that the US Federal Reserve may delay cuts in interest rates. Higher for longer interest rates usually put pressure on risk assets. Markets had previously priced in faster and deeper rate cuts, which supported high risk assets. When those expectations are questioned or reversed, assets like cryptocurrencies often witness sharp corrections.

4. Weakening Risk Appetite

Overall risk appetite among investors has weakened. Concerns about global growth, inflation trends and geopolitical events have made investors more cautious. In such times, riskier assets are usually the first to face heavy selling.

All these factors combined to create a perfect storm for digital assets, triggering heavy profit booking and panic selling in the crypto market.

What Should Investors Do During A Crypto Crash

For investors, the key question is how to react when markets fall so sharply. While every individual situation is different, there are some general points to consider.

• Avoid emotional decisions
  Panicked selling just because prices are falling may lock in losses that could have been recovered over time. Decisions should be based on your long term plan and risk tolerance.
• Review your asset allocation
  If your crypto exposure has become too large relative to your total portfolio, it might be wise to rebalance when conditions stabilize.
• Focus on quality assets
  Established cryptocurrencies with strong use cases and large communities often recover faster than highly speculative or unknown tokens.
• Remember the risk profile
  Crypto is a high risk asset class. Only money that you can afford to lose should be invested in it. If a crash causes sleepless nights, your allocation may be too high.

Investors who remain disciplined, informed and realistic about the risks are better placed to handle such periods of extreme volatility.

Risks Of Crypto Volatility That Investors Must Understand

The recent crash is a reminder of the unique risks associated with cryptocurrencies.

• Prices can move sharply within hours, wiping out a large part of the portfolio.
• There is no central authority or regulator to stabilize markets.
• News, social media and market rumors can trigger large swings.
• Leverage and derivatives trading can amplify both gains and losses.

Anyone considering investing in crypto must understand these risks fully and should not treat digital coins as a guaranteed path to quick wealth.

Frequently Asked Questions

1. How much value was wiped out in this crypto market crash

In the last 24 hours, the global crypto market cap fell from around 3.14 trillion dollars to about 2.95 trillion dollars. This decline of nearly 0.19 trillion dollars translates to an estimated loss of around ₹17 lakh crore.

2. Why did Bitcoin fall so sharply despite being the largest cryptocurrency

Bitcoin acts as the flagship asset of the crypto market. When overall risk sentiment turns negative due to factors like rising bond yields and uncertainty over interest rates, large investors often sell Bitcoin first. This selling pressure can lead to sharp declines in its price.

3. Did all major cryptocurrencies fall during this crash

Yes, most major cryptocurrencies were in the red. Ethereum, Solana, Ripple and Cardano all saw declines of around 7 percent or more. Many of the top 100 tokens recorded losses in the range of 10 percent to 20 percent.

4. What is the Fear and Greed Index and why is it important

The Fear and Greed Index is a sentiment indicator that ranges from 0 to 100. Low values indicate fear, while high values indicate greed. During the recent crash, the index fell near 11, which signals extreme fear and shows that investors are highly worried and risk averse.

5. Where can I track official crypto market data in real time

You can track global crypto prices, market capitalization, trading volumes and rankings on CoinMarketCap. The official website is https://coinmarketcap.com, where data is updated frequently for thousands of cryptocurrencies.

Conclusion

The latest crash in the global crypto market, which wiped out nearly ₹17 lakh crore in a single day, has once again underlined the high risk nature of this asset class. Bitcoin, Ethereum, Solana, XRP, Cardano and almost all major tokens came under heavy selling pressure.

Rising US Treasury yields, tighter financial conditions and uncertainty over US Federal Reserve interest rate cuts have all contributed to this sharp correction. For investors, the event serves as a powerful reminder that while the rewards in crypto can be high, the risks are equally significant.

Anyone investing in cryptocurrencies should do so with proper research, a clear strategy and a willingness to accept volatility as part of the journey.

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