Crypto Market Crash: $128 Billion Wiped Out in Four Hours

The cryptocurrency market experienced a significant crash on Friday, with $128 billion wiped out in just four hours. Bitcoin fell by 2%, XRP by 1.89%, and Ethereum by 6%, Finbold reported. The crash was triggered by major jitters and liquidations in the market, with the largest crypto crash in history occurring last Friday. The Financial Stability Board warned of significant gaps in countries' attempts to regulate fast-growing crypto markets, which could potentially harm financial stability, PYMNTS reported.

The cryptocurrency market experienced a significant crash on Friday, with $128 billion wiped out in just four hours. Bitcoin (BTC) fell by 2%, XRP by 1.89%, and Ethereum (ETH) by 6%. The crash was triggered by major jitters and liquidations in the market, with the largest crypto crash in history occurring last Friday.

The crash was part of a broader market sell-off that saw the global market capitalization drop from $3.86 trillion on October 15 to $3.75 trillion on October 16, erasing approximately $110 billion from its total value, according to the report. Bitcoin, often referred to as the "digital gold," took the biggest hit, with its market capitalization declining from $2.24 trillion to just shy of $2.19 trillion over the same time span.

The crash was not limited to Bitcoin. Nearly all of the top 10 cryptocurrencies by market cap were also in the red. Solana (SOL) fell nearly 3.5%, while Cardano (ADA) was down 2.2%. Ethereum (ETH) and XRP also declined 1% and 1.75%, respectively. The only exception at the time of writing was Tron (TRX), which remained up 1.5% in the past 24 hours.

XRP, in particular, has been under heavy pressure. The token slipped beneath the psychologically important $2.40 threshold on October 16, extending a decline that has already seen XRP tumble more than 14% from last week’s peak at $2.79, Finbold warned. The digital asset’s market capitalization has shrunk from $167 billion to $143 billion in just seven days, with nearly $8 billion wiped out in the past 24 hours alone, the same Finbold analysis added.

Adding to market jitters, a long-dormant Bitcoin wallet moved 2,000 BTC (worth some $222 million) across 51 new addresses on Thursday, sparking speculation among traders. Similarly, U.S. spot Bitcoin ETFs saw $94 million in outflows on Wednesday, reducing total net inflows to $62.45 billion.

The Financial Stability Board (FSB) warned of significant gaps in countries' attempts to regulate fast-growing crypto markets, which could potentially harm financial stability. The FSB urged jurisdictions to fully and consistently implement the FSB Global Framework for Crypto-asset Activities to eliminate the gaps and inconsistencies that currently exist, the PYMNTS piece noted. The FSB brought together national authorities responsible for financial stability in 24 countries and jurisdictions, and it conducts outreach with about 70 other jurisdictions.

The FSB’s warning comes at a critical time as the crypto market faces increased volatility and uncertainty. The Crypto Fear & Greed Index has plunged from a “Greed” level of 71 last Friday to “Fear” at 32 at press time, similar to the levels seen in April when the asset dropped to as low as $74,000.