The cryptocurrency market lost $150 billion in value in a matter of hours on Friday, October 17, further escalating its continuing downtrend.
According to data Finbold retrieved from CoinMarketCap, the total market valuation plunged from $3.7 trillion at around 6 a.m. UTC to $3.55 trillion by 10 a.m. UTC, an approximately 5.8% dip.
Crypto market cap. Source: CoinMarketCapThe losses were universal for the top 10 assets by market capitalization, as they were all in the red on the daily chart. Bitcoin (BTC) is down 5.60% as of the time of writing, while Ethereum (ETH) has dropped more than 7.16%.
Similarly, XRP and Solana (SOL) have fallen 7.69% and 8.23%, respectively, while Cardano (ADA) and BNB bore the brunt of the blow, the former plummeting 9.84% and the latter 11.93%.
Macroeconomic developments sink the crypto market
The digital currency sector continued to decline due to renewed global uncertainty and tensions between the U.S. and China, with President Donald Trump explicitly stating that Washington is now in a trade war with Beijing on Thursday, October 16.
His comments about imposing 100% tariffs on Chinese imports last week are still rattling investor confidence, but the threat of potential new trade disruptions is further pushing the market toward more defensive assets. This atmosphere of uncertainty is weighing heavily on both digital and fiat currencies, as cash allocation for institutional investors is at its lowest in 12 years.
While digital assets are struggling to stay afloat, gold is extending its record-breaking rally, trading at $4,339 per ounce, up another 1.14% over the past 24 hours.
Gold price. Source: GoldPrice.orgCrypto ETF outflows suggest further weakness
Adding to the pessimistic outlook, U.S. spot Bitcoin ETFs recorded $536 million in net withdrawals on October 16, according to data Finbold reviewed on SoSoValue.
This was the largest single-day withdrawal since August, as none of the twelve funds were in the green.
Spot Ethereum ETFs likewise shed $56.88 million, with BlackRock being the only fund to register a minor inflow.
The ongoing erosion thus reflects a combination of trade-related anxiety and loss of institutional appetite.
Featured image via Shutterstock
Source: https://finbold.com/crypto-market-wipes-150-billion-within-hours/
