The Crypto Meltdown

A sharp Bitcoin-led selloff has triggered one of the steepest corrections in the cryptocurrency market in recent years, erasing nearly $1 trillion in value in less than a week. Bitcoin, the world’s largest cryptocurrency, slipped to a 15-month low of $72,877 in the US on Tuesday before recovering marginally to around $74,800 in early New York trading on Wednesday, according to Bloomberg.

The downturn has hit altcoins even harder. Ethereum, the second-largest cryptocurrency, has lost more than $100 billion in market capitalisation over the past seven days. Its price fell below the $2,200 mark—its weakest level in nine months—reflecting broad investor risk aversion and heavy profit-booking across digital assets.

Despite the turbulence, parts of the crypto ecosystem continue to evolve. Silicon Valley-based startup accelerator Y Combinator has announced that it will allow startups to receive funding in stablecoins, signalling continued institutional experimentation with blockchain-based finance even amid market stress.

In contrast to cryptocurrencies, traditional safe-haven assets are benefiting from the current macro environment. Gold prices are on track for another record year, driven largely by persistent geopolitical tensions and global economic uncertainty, according to Reuters data. Investors appear to be rotating capital away from volatile digital assets toward assets perceived as more stable.

The divergent performance of crypto and gold highlights a broader market reset, as investors reassess risk, liquidity, and long-term value in an increasingly uncertain global landscape.