Crypto Market Loses $130 Billion in 24 Hours Bitcoin Drops 3%

The cryptocurrency market experienced a significant downturn over the past 24 hours, with a total market capitalization loss of $130 billion. This sharp retreat affected various cryptocurrencies, with notable declines observed across the board. Bitcoin, the leading cryptocurrency, faced a 3% decline, trading just above $105,000. Altcoins were hit even harder, with XRP slipping 4%, Solana down roughly 5%, and Dogecoin leading the declines in the top 10 digital assets by market worth with a 9% drop.

This sell-off hasn't erased the strong gains seen over the past quarter. Bitcoin remains firmly above its 200-day moving average and is still up significantly year-to-date. However, the broader trend for Bitcoin and select large-caps remains upward on higher time frames, today’s drop underscores how quickly sentiment can shift in the current market. With June around the corner and several token unlocks and macro events on the radar, short-term caution may continue to dominate.

Risk-off sentiment appears to have gripped traders amid macro uncertainty and renewed concerns over near-term crypto inflows. Short-term momentum has clearly shifted, and several major assets are now testing key support levels. The market's volatility was evident as the overall sentiment shifted, leading to substantial losses across different digital assets. The downturn in the crypto market was not uniform, as some tokens bucked the trend. Worldcoin's WLD token, for example, surged 25% within 24 hours of an announcement, reaching a three-month high of approximately $1.55. This surge was driven by a $135 million direct sale of WLD tokens, which added over 100 million tokens to the circulating supply. The funding is aimed at scaling Orb distribution in the U.S. and fueling global demand for verifiable digital identity amid the rise of AI. Worldcoin's proof-of-personhood model, where users scan their irises via the Orb in exchange for airdropped WLD tokens, has garnered significant interest, with over 26 million users and 12.5 million having completed Orb-based verification.

The market's volatility highlights the inherent risks and opportunities within the crypto space. While some tokens experienced significant losses, others saw substantial gains, reflecting the dynamic nature of the market. The recent downturn serves as a reminder of the importance of risk management and diversification in crypto investments. As the market continues to evolve, investors and analysts will closely monitor developments to navigate the ever-changing landscape.