What is happening all this? Global market cap has lost over half of a trillion dollars in a matter of the last few hours.
Big assets like Bitcoin, Ethereum, Solana and Dogecoin have plummeted, the sort of action that lopped 90 percent off of even the biggest coins during the last bear market and is causing existential questions for many investors.
Here’s a brief overview of where some of the most prominent digital coins are on Wednesday:
Bitcoin (BTC): Fell below $102,000, decreasing 1.23%
Ethereum (ETH): Fell to $2,548.30, representing a decrease of 2.08%
Solana (SOL): Dropped to $171.40, a decrease of 3.88%
Dogecoin (DOGE): Fell to $0.2267, a decrease of 3.4%
What caused this sudden drop?
Here are some of the reasons analysts are attributing for the dip in the market:
Profit-taking on many coins to resistance zones.
Inflation fears returning in global markets
Geopolitical pressures causing more generalised uncertainty
No Collins is but a domino precipitated over-leveraged liquidations
Increasing regulatory scrutiny in more than one jurisdiction
Should you panic?
The quick answer is no — market corrections like this are the norm in crypto. Volatility is par for the course, and the past shows that sharp drops can be followed by powerful recoveries.
What should you do now?
Stay calm. Emotional responses almost always create error.
Stick to your strategy. Long-term thinking prevails in the end.
Watch key technical levels. There is such a thing as support and resistance zones that do matter.
Diversify. You can’t count on one coin to propel your portfolio activity.
Keep learning. The more you know, the better you’re going to decide.
This is not the end for crypto — far from it. Market resets like this shake the weak hands out and create room for the stronger momentum. If you’ve been diligent about your research and played your portfolio smartly, there’s no reason to panic.
Remain focused, remain patient and remain informed.
