Bitcoin took a massive hit today and fell to 11th place on the global asset leaderboard. The price crashed to around $82,630 which pushed its market cap down to $1.642 trillion. This sell off wiped out $1.8 billion in crypto positions in only 24 hours. It looks like the worst bloodbath the market has seen since October. But the pain is hitting everywhere right now. Gold and silver prices also tanked even though they still hold the highest ranks on the list.
The main reason for this drop is a major shift in how people are investing. Big tech giants are the ones winning the race for capital. Companies like Nvidia and Google are dominating the top spots because they are betting everything on AI technology. Investors are pouring billions into these firms while crypto and metals struggle to find any support. Even Saudi Aramco and TSMC have grown enough to have more value than Bitcoin at this point.
Much of this fear comes from the Federal Reserve. The Fed just held interest rates steady at 3.5% but refused to promise any cuts soon. To make things more tense, President Trump nominated Kevin Warsh as the new Fed chair today. Warsh used to be known as an inflation "hawk" who wanted higher rates. But lately he has changed his tune and says AI productivity will allow for deeper rate cuts. This mix of signals is making investors nervous. They aren't sure if he will actually cut rates or if he will listen to the White House too much.
When people are unsure about the future of the dollar, they tend to sell risky assets like Bitcoin. This drama at the Fed is happening right as a government shutdown is looming. All these things together created a perfect storm for a market crash. Microsoft and other tech stocks also dropped because people are worried that AI spending is not turning into profit fast enough.
The rest of the crypto market is bleeding just as bad. Ethereum fell hard and is trading near $2,730. Almost every major coin is deep in the red this week with very few signs of a recovery. Bitcoin ETFs also saw over $1.1 billion in outflows as big institutions pulled their money. It is a tough time for anyone holding crypto as the gap between digital assets and traditional tech giants keeps getting wider. #MarketCorrection 
