Crypto Market Down: Capitalization Falls Below $3.1 Trillion as Bitcoin Retreats

LiquidityWizard · 2026-01-13T08:03:46+00:00

In December 2025, the cryptocurrency sector faced significant pressure, with Bitcoin dropping 8% and a market loss exceeding $140 billion. This decline was exacerbated by macroeconomic factors and a $20 billion liquidation event, prompting investors to seek risk mitigation strategies.

LiquidityWizard

2026-01-13 08:03:46

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The cryptocurrency sector faced a significant period of pressure in early December 2025, with Bitcoin experiencing an 8% retracement and reaching US$ 83,824. This devaluation had a cascading effect on the broader market, causing the total cryptocurrency market capitalization to fall below US$ 3.1 trillion, representing a loss of over US$ 140 billion in just 24 hours.

The Trail of the Crypto Market Drop

The top 100 digital currencies have accumulated substantial losses throughout 2025, with a collective depreciation close to 70%. This scenario was intensified by a significant liquidation event worth US$ 20 billion in October, which exposed structural vulnerabilities across different segments of the market.

Macroeconomic Factors Behind the Volatility

Market experts identify multiple causes for the downward movement. Global macroeconomic pressures, rising risk aversion among institutional investors, and contradictory signals from the Federal Reserve appear as the main catalysts of this turbulence. Uncertainty about the trajectory of interest rates continues to influence resource allocation decisions in the digital asset segment.

Protection Strategies in Volatile Times

In the face of this challenging scenario, investors seek tools and strategies to mitigate risks. Regulated platforms offer features such as staking programs, dollar-cost averaging strategies, and portfolio diversification to assist in navigating the turbulent periods characteristic of the falling crypto market. The willingness to stay invested during fluctuations, combined with active risk management, emerges as the preferred approach for more experienced managers.

BTC3,53%

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