₹18 Lakh Crore Wiped Out: Crypto Market Plunges 10% in 24 Hours, Fear & Greed Index Hits 5

New Delhi: The cryptocurrency market has been thrown into turmoil, with investors rushing to sell digital assets. Over the past 24 hours, the global crypto market has dropped nearly 10%, resulting in losses exceeding ₹18 lakh crore (approximately $220 billion). As of Friday morning, the total market capitalization of cryptocurrencies stood at $2.24 trillion.

Bitcoin Bears the Brunt
Bitcoin, often dubbed “digital gold,” has been particularly hard hit, losing more than 20% since the start of 2026. From its record high of $124,000 in October, Bitcoin has fallen by more than half. On Friday morning, it traded at around $65,500, below the levels seen at the start of former U.S. President Donald Trump’s second term. Bitcoin’s price volatility continues to reflect its speculative nature, as it generates no dividends or intrinsic returns; its value depends solely on investor demand.

During intraday trading, Bitcoin briefly fell to $60,008 before recovering to $64,153. Meanwhile, the broader crypto market—including Ethereum and Binance Coin—also tumbled sharply, creating panic among investors.

Market Losses Spread Across Cryptos and Stocks
Since the peak in early October 2025, the total crypto market capitalization has fallen from $4.38 trillion to $2.26 trillion. In just the last month, investors suffered losses of around $800 billion. Bitcoin has declined 28% so far this year, while Ethereum has dropped approximately 38%. Companies holding significant crypto assets have also faced pressure on their stock prices, amplifying sector-wide concerns.

Reasons Behind the Crash
The decline is linked to uncertainty over U.S. Federal Reserve interest rate decisions. Concerns over overvaluation in AI and tech sectors have further pressured risky assets like crypto. Investor panic accelerated after Donald Trump nominated Kevin Warsh as the next Fed Chair, with analysts warning that a tighter Fed balance sheet could negatively impact speculative markets. Consequently, Bitcoin has erased all gains accumulated since Trump’s election, despite earlier optimism over more crypto-friendly policies.

Fear & Greed Index at Extreme Low
Crypto sentiment has plunged, with the Fear & Greed Index falling from 49 last month to just 5—indicating extreme fear. This is the lowest level since November 2025, when the index was at 76, signaling strong investor optimism. The drastic shift reflects heightened caution and widespread nervousness among cryptocurrency investors.

As the market reels, investors are closely watching regulatory signals and macroeconomic developments, while the global crypto ecosystem braces for further volatility.