The crypto market was dealt a heavy blow as the situation in Eastern Europe escalated, leading to a broader market selloff. Bitcoin, Ethereum and XRP were all down over 10%. Consequently, the total cryptocurrency market cap decreased by 3.7 percent within 24 hours. Although the crypto market is up significantly year-to-date, recent losses have accumulated, showing continuing investor nervousness.

Bitcoin fell 2.3 per cent overnight, pushing its trading price below $105,196. Even with this downturn, Bitcoin is still the most influential player in the cryptocurrency realm. Its market share surged to 64.04 percent, from 63.2 percent on the day before.

Bitcoin is currently trading around $104,830, 6 percent under its all-time high of $111,970. The top dog cryptocurrency is doing extremely well! Its stellar performance has rocketed it up to 7th place in the ranking of all assets by market cap.

Ethereum, the second-largest cryptocurrency by market cap, fared even worse. It actually fell by 7.5 percent overnight to see an opening trade at $2,539.

For all of the overnight losses, Ethereum has continued to show strength as well. It’s up 3.2 percent in the last week.

Ethereum’s price today is 48 percent lower than its all-time high. This is indicative of the uncertainty that is part and parcel with the cryptocurrency industry.

XRP was certainly not immune to the market-wide crash. It was down over 4 percent in the past 24 hours and was trading at $2.14.

As of the time of writing, XRP’s all-time high is about 44 percent higher than its current trading price. This further demonstrates the struggles altcoins are in, trying to keep a stable value over time.

The combined crypto market cap has sunk 3.7 percent over the last 24 hours. This singular drop highlights just how connected all cryptocurrencies are to one another.

The total crypto market capitalization is $3.26 trillion. This massive number is a testament to the incredible value that still exists in the crypto ecosystem.

Interestingly though, 24-hour trading volume has jumped over 24 percent overnight, topping $167 billion. This significant jump in trading volume indicates a heightened level of engagement.

The uptick in activity may be explained by investors to take advantage of the inordinate amount of market volatility. Speculators investors might just be trying to paint the tape and profit off short-term price movement.

Year-to-date gains for the overall crypto market hover around just under 13 percent. That means that even after the declines of the past few months, the overall crypto market has done incredibly well this year.

Predictions for crypto market losses in 2025 have risen to just over 24 percent. This is all thanks to the recent bear market.

The surge in losses underlines the serious financial risks that can come from investing in cryptocurrencies. This is because market sentiment changes quickly, often causing large moves in the price of assets.

Only 5 of the top 100 cryptos are trading in the green today with double digit gains. This sets up an image of vast losses throughout the wider crypto landscape.

The small amount of gainers indicates a broadly bearish sentiment that’s winning out among investors today. Investors are likely adopting a risk-off approach.

The blog post explains that the reasons behind crypto market’s decline are more complex than you might think. Rising geopolitical tensions are a significant factor.

Uncertainty in the global landscape usually causes investors to gravitate towards safer assets. This can lead to broadening risk aversion and a sell-off of riskier assets including second-tier cryptocurrencies.

Regulatory worries remain a major concern for the crypto market. Lack of clarity about what is allowed under future regulations can cool investor appetites.

As discussed last week, governments everywhere are struggling with how to approach the regulation of cryptocurrencies. This regulatory ambiguity has fostered a chill.

Market corrections are an inevitable occurrence in any investment cycle. That’s not to say the crypto market hasn’t experienced short and long term corrections in its brief history.

These corrections can be sharp and unpredictable. This is a perfect illustration of why it is crucial to manage risk when investing in cryptocurrencies.

The crypto market does not look good in the long run. Despite the bears, some bullish optimistic analysts still expect great things from crypto in the coming years.

Other analysts, including some at Bloomberg Intelligence, warn that the market remains nascent. The whole market seems to be vulnerable to great volatility.

Even with this recent decline in market sentiment, many investors are looking at this moment as a buying opportunity. They believe that prices will eventually rebound.

These investors are taking a contrarian approach. They are taking a gamble that the market will come back.

We all know that the crypto market is volatile. Smart investors understand that for every opportunity, there is a risk of making—and losing—money.

While there are many strategies to mitigate risk, diversification is perhaps the most important. For this reason, investors should diversify their portfolios by asset class.

It’s more important than ever to be educated on emerging market trends and developments. So, investors, stay on your toes and be prepared to invest intelligently.

The crypto market is constantly evolving. New technologies and new applications are coming at us every minute.

These developments could potentially drive future growth. They introduce new risks.