Bitcoin's crash drags down the market: it loses more than 15.000 billion euros in just one week.

The drop in Bitcoin's price triggered massive liquidations totaling more than €15.000 billion in a matter of hours.

Last week, the cryptocurrency market experienced intense volatility. Within a few hours, massive liquidations of leveraged positions exceeded €15.000 billion, a direct consequence of the sharp drop in the price of Bitcoin. 

As this outlet has reported, this price collapse not only affected the most valuable cryptoasset, but also reflected a climate of uncertainty fueled by trade tensions between the United States and China and the fragility of the global macroeconomic environment. Meanwhile, traditional financial markets showed parallel movements, highlighting how the global outlook simultaneously affects different types of assets.

The correlation between global tension and digital markets

The main factor associated with this decline came from the geopolitical sphere. The resurgence of rhetoric surrounding the trade dispute between the United States and China generated greater risk aversion in global markets. 

US President Donald Trump's statements regarding the possible imposition of new tariffs on Chinese technology products impacted investor confidence. In response, capital flowed toward assets traditionally considered safe havens, such as gold and Treasury bonds. Media outlets such as Reuters and the Financial Times reported on the impact of these statements on futures markets, predicting a week of negative trading. This environment affected riskier assets, a category that still includes cryptoassets.

The cryptocurrency market reacted quickly to the announcement. In less than a day, the total market capitalization fell from approximately $4,24 trillion to $3,76 trillion, according to data from CoinGecko. Bitcoin, which had started the week trading above $121.000, suffered a significant correction, hitting lows of $107.000, a drop of nearly 12%. Later, although BTC recovered some of its value, once again reaching above $115.000, the drop set the tone for the entire digital market, which continues to face volatility and corrections.

Short-term outlook from experts

Following the abrupt decline in Bitcoin's price and the resulting loss of more than €15.000 billion in massive liquidations of leveraged positions, the cryptocurrency market is at a crossroads. Although BTC has managed to partially recover its value, volatility persists, and analysts are considering whether this is a technical rebound or a sign of a sustained recovery. In this context, investors are cautiously watching upcoming macroeconomic developments, paying particular attention to the Federal Reserve, whose interest rate decisions could influence appetite for risky assets like Bitcoin and cryptocurrencies. 

On the other hand, institutional interest in digital assets remains latent, albeit at a lesser intensity. Hedge funds and asset managers have adopted a more conservative stance, prioritizing capital preservation in the face of regulatory and geopolitical uncertainty. In this scenario, the coming days will be key to determining whether the market manages to consolidate new support or if another wave of corrections is imminent.

The dominant narrative no longer revolves solely around Bitcoin's price, but rather its ability to withstand adverse cycles and maintain its role as an alternative asset in an increasingly complex environment.