Bitcoin Tumbles Below $65K as Crypto Market Suffers Worst Downturn Since 2022
The crypto market has experienced a severe downturn in 2026, with trillions of dollars wiped from its value. Bitcoin's price has fallen back to around $64,400, and many altcoins have crashed.
This downturn is not just limited to the top cryptocurrencies, as the total capitalization of the market has dropped by 52% since October 2025. The spot trading volume for the ten largest centralized exchanges fell by 27.9% in the second quarter, while average daily crypto trading volume decreased by nearly 21%.
The reasons behind this downturn are complex and multifaceted. Liquidity has been a major issue, as the Federal Reserve's dovish but non-abelian stance on monetary policy has diminished 'easy money' for risk assets. Additionally, AI stocks have seen an extraordinary bull market, siphoning off capital from crypto.