Bitcoin Crash Triggers Massive $2 Trillion Crypto Market Wipeout

Bitcoin just suffered one of its steepest plunges in recent memory, dragging the entire cryptocurrency market into a $2 trillion collapse and there’s no sign the bottom is in.

The world’s largest digital currency dropped as low as $66,675 on Thursday, its weakest point since before Donald Trump’s 2024 election victory. That alone is telling. The crypto world had been riding high in the weeks leading up to Trump's announcement of pro-crypto policy positions. Now, with weak leadership in Washington and financial instability shaking global markets, Bitcoin is down over 23% year-to-date.

Meanwhile, Ethereum the second-largest token dropped below $2,000 and is down 34% on the year. Investors are bailing fast, and the once-hyped digital gold is looking more like fool’s gold.

Here’s what’s driving this massive decline:

• Institutional investors are dumping crypto: U.S.-based spot Bitcoin ETFs have seen over $12 billion in outflows since November 2025, with $3 billion yanked in January alone.

• Speculative assets are unraveling: With gold and silver showing heightened volatility and the tech-heavy Nasdaq falling to multi-month lows, appetite for risk is evaporating.

• Trump’s Fed pick is shaking markets: Kevin Warsh, Trump’s selection for Federal Reserve Chair, is expected to take a hawkish approach potentially shrinking the Fed’s balance sheet, a move historically bad for crypto and other speculative plays.

Crypto insiders are calling it a full-blown “capitulation phase.” This isn’t just a dip. It’s a seismic shift and one many investors aren't prepared for.

Wall Street strategists are now warning of forced liquidations from major crypto miners if prices continue to drop. This could spark a dangerous feedback loop that pushes the entire market into freefall. And with artificial intelligence stocks previously the darling of Wall Street also crumbling, crypto has lost its momentum on all fronts.

Under Biden’s economic “leadership,” inflation remains a persistent threat, markets are more volatile than ever, and investor confidence is in tatters. It’s not a coincidence that crypto started to unravel under his administration, just as it’s no coincidence it soared when Trump embraced innovation and market freedom.

As the 2024 election nears, this downturn underscores the clear contrast between a pro-growth, pro-investor Trump economy and the weak, reactive leadership we’ve suffered under Biden and his Wall Street cronies.

If you’re still clinging to digital dreams, this might be the wake-up call you didn’t want but needed.

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