The cryptocurrency market lost $ 140 billion in capitalization in just five hours

The global cryptocurrency market suffered a sharp collapse on Wednesday, losing about $ 140 billion in market capitalization in five hours. The total value of digital assets dropped from $ 3.54 trillion to $ 3.40 trillion, indicating the return of increased volatility. The leading cryptocurrencies lost the most: bitcoin BTC $90,830.33 Mezo Wrapped BTC 4.10% Market capitalization $43.31 million VOL. 24 hours $2.26 billion , ethereum ETH $3,043.67 Bridged Ether (StarkGate) 2.95% Market capitalization $79.63 million VOL. 24 hours $1.1 billion and XRP XRP $2.21 XRP 0.75% Market capitalization $133.52 billion VOL. 24 hours $0.25 billion .

Among the altcoins, Solana SOL $142.92 Binance-Peg SOL 3.01% Market capitalization $0.16 billion VOL. 24 hours $0.56 billion fell the most — by 3.69% to $ 152.24. The BNB token BNB $894.96 BNB 3.81% Market capitalization $123.27 billion VOL. 24 hours $0.17 billion lost 1.57% to trade at $ 947.96. The drop was caused by concerns about US monetary policy. There are still disagreements within the Federal Reserve: some officials see inflation as the main risk, while others see the weakness of the labor market as the main risk. Uncertainty about a possible rate cut in December has increased pressure on crypto assets. An additional factor of instability was the recent «shutdown» of the US government, which delayed the publication of economic data.

Amid these developments, investors are increasingly shifting to safer assets, including gold. Bitcoin has lost about 17% of its October high and continues to hover around $ 100,000, raising doubts about its role as a hedge against inflation. Morgan Stanley strategist Danny Galindo said that bitcoin has entered its «fall phase» — the period after growth when investors take profits. Some analysts predict a further decline in the BTC price.

Despite the decline, institutional interest in the crypto market remains high. U.S. exchange-traded funds based on spot bitcoin currently manage assets worth more than $ 137 billion. Market participants are focused on whether bitcoin will be able to stay above $ 100,000. A drop below this level could trigger a new wave of sales across the sector.

The overall market situation remains unstable. Volatility is on the rise, and investors are closely monitoring macroeconomic signals. In the coming days, increased activity is expected, especially in connection with possible decisions by the Federal Reserve regarding interest rates.