The cryptocurrency market experienced a significant downturn today, with the global market capitalization declining by approximately 6% to $3.36 trillion. This decline was accompanied by a substantial increase in trading volume, up over 35% to $172.39 billion, indicating heightened market activity amid the volatility.

Bitcoin (BTC), the leading cryptocurrency, saw its price drop by about 5%, falling below the $97,000 mark. As of now, Bitcoin is trading at approximately $93,888, reflecting a decrease of around 3.34% from the previous close.

Ethereum (ETH) experienced a sharper decline, with its price decreasing by nearly 9% to around $3,250. Other major cryptocurrencies, including Solana (SOL) and XRP, also faced significant losses, with SOL down approximately 8.6% and XRP declining by about 5%.

Several factors have contributed to this market downturn:

Macroeconomic Uncertainties: Rising U.S. Treasury yields, fiscal deficits, and concerns over the debt ceiling have increased investor unease, leading to greater volatility across various asset classes, including cryptocurrencies.

Regulatory Environment: The election of President Donald Trump and the anticipation of crypto-friendly regulations have created a complex backdrop. While some investors are optimistic about potential regulatory clarity, others fear that reduced oversight could lead to increased market volatility and financial instability.

It's important to note that the cryptocurrency market is known for its volatility, and such price swings are not uncommon. Investors should exercise caution and consider their risk tolerance when engaging with digital assets.