The cryptocurrency market experienced one of its sharpest downturns this year, losing approximately 2.6% of its market capitalization, settling at $3.34 trillion. This was not a random drop, but rather a direct reaction to complex macroeconomic and geopolitical signals.
Analysis from Leading International Bodies:
The International Monetary Fund (IMF) has recently warned about rising inflation in major economies, prompting central banks to tighten monetary policy — reducing investor appetite for high-risk assets like cryptocurrencies.
The OECD highlighted that ongoing trade tensions between China and the U.S. are damaging global market confidence, particularly in unregulated sectors such as digital assets.
The Financial Action Task Force (FATF) raised its concerns over the use of crypto in illicit finance, encouraging governments to implement stricter regulatory frameworks.
Top Declining Cryptos:
(DOGE$) dropped over 10% following panic selling by retail investors.
(SOL$) fell after unexplained movements by entities like Pumpfun.
(KAS$) and (PI$) saw sharp losses due to liquidity issues and capital flight.
Future Outlook:
Volatility is expected to persist in the short term, especially without clear regulatory direction. However, institutions like the Bank for International Settlements (BIS) suggest that stability may return as regulatory clarity improves and transparency increases. Crypto projects with real-world use cases and solid technology are likely to lead any future recovery.
