Over the past 24 hours, the cryptocurrency market has lost over $100 billion in market capitalization due to weakening investor sentiment, marking the end of the bull run led by Bitcoin.
As of press time, the total cryptocurrency market capitalization was approximately $2.6 trillion, down from $2.7 trillion the previous day, representing a loss of about $100 billion within a few hours.
Selling pressure spread to major digital assets, with Bitcoin falling 3.24% to around $77,878, after briefly fluctuating between $77,860 and $80,733 in the past 24 hours. Ethereum (Ethereum) also saw a significant decline, dropping 3.76% to approximately $2,170.
Among the largest-cap cryptocurrencies, Solana fell 5.97% to $85.75, becoming one of the worst-performing major cryptos today. BNB dropped 4.78% to $651.88, while XRP declined 4.65% to $1.40.
Why is the cryptocurrency market declining?
The latest downturn coincides with the ongoing escalation of the U.S.-Iran conflict and rising geopolitical tensions. Recent reports indicate that U.S. President Trump rejected Iran’s peace proposals, leading to a deadlock in ceasefire negotiations and increasing uncertainty in global markets.
Tensions have pushed oil prices higher, with April CPI data reporting a 17.9% increase in energy costs amid concerns over supply disruptions in the Strait of Hormuz.
Uncertainty drives investors toward safer assets, away from higher-risk markets such as cryptocurrencies, and the recent 1.6% decline in the cryptocurrency market is also linked to geopolitical news.
Macroeconomic pressures have also weighed on the market, as higher-than-expected U.S. inflation data reduced expectations for near-term Fed rate cuts.
According to reports, the April CPI rose 3.8% year-over-year, and persistently high producer price data boosted the dollar and U.S. Treasury yields, while also pressuring risk assets like Bitcoin, which briefly fell below $80,000.
Broader weaknesses in stocks and tech markets, combined with rising oil prices and leveraged liquidations, further weighed on market sentiment.
Meanwhile, market weakness has also been linked to recent changes in exchange-traded fund (ETF) fund flows. For example, U.S. spot Bitcoin ETFs experienced net outflows of $1 billion for the week ending May 15, marking the largest weekly redemption since late January.
The outflow also ended the longest consecutive inflow period for these funds since July 2025. Over the previous six weeks, the funds attracted approximately $3.4 billion in inflows, averaging about $568 million per week, helping fuel the cryptocurrency market’s spring recovery. In April alone, inflows reached $1.97 billion, marking the highest monthly total since 2026.