Crypto Collapse: Market Turbulence Amid Liquidation Frenzy

Bitcoin and other cryptocurrencies suffered a significant downturn, fueled by market volatility in tech shares and precious metals. Over $1 billion in bitcoin positions were liquidated in 24 hours, with the crypto market losing $2 trillion since October. Republican Donald Trump's Fed chair pick, Kevin Warsh, also contributed to market fears.

Bitcoin experienced a sharp decline on Thursday, exacerbated by a broader selloff in tech shares and volatility in precious metals. The drop brought Bitcoin to its lowest level since October 2024, amid already diminishing risk sentiment across markets.

The cryptocurrency plunged to a low of $63,295.74, marking a 12.6% loss for the day and its largest one-day fall since November 2022. The downturn follows the liquidation of roughly $1 billion in Bitcoin positions over the past 24 hours, adding to market woes that have erased about $2 trillion in total value since early October.

Compounding the situation, sentiment was further affected by former President Donald Trump's selection of Kevin Warsh as Federal Reserve chair, who may shrink the Fed's balance sheet. This has raised concerns about reduced liquidity support for speculative assets, including cryptocurrencies.

(With inputs from agencies.)