CoinTelegraph
The total crypto market capitalization has shed more than $500 billion since its peak in May, sliding from roughly $3.8T toward the $3.3T area as a broad risk-off move pulled every major token into drawdown. The drawdown is cross-asset rather than coin-specific: BTC and ETH led the leg down, with altcoins and mid-caps giving back a larger share of their May gains.
Why it matters
A half-trillion-dollar wipe in roughly six weeks is the kind of move that resets positioning across the board. Leveraged longs built during the spring rally have been forced out, spot ETF inflows have cooled, and the bid that lifted the market to its May high has thinned. For investors who measure cycles in drawdowns, this is the first sustained risk-off event since the late-2024 rally began.
Market impact
The pattern looks like a macro deleveraging rather than a crypto-specific story. Correlations with equities and rates have tightened, which is the hallmark of a market trading on liquidity, not narrative. A clean reclaim of the prior range would signal the flush is over; a break below recent local lows would extend the drawdown toward the next major support band.
Frequently asked questions
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How much has the crypto market lost since its May peak?
The total crypto market capitalization has shed more than $500 billion since its May peak, falling from roughly $3.8T toward the $3.3T area in roughly six weeks.
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Which tokens led the selloff?
BTC and ETH led the leg down, with altcoins and mid-caps giving back a larger share of their May gains. The drawdown is cross-asset rather than coin-specific.
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Is this a crypto-specific story or a macro event?
The pattern reads as macro deleveraging. Correlations with equities and rates have tightened, which is the hallmark of a market trading on liquidity rather than on crypto-specific narrative.
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What would signal the selloff is over?
A clean reclaim of the prior range would signal the flush is over. A break below recent local lows would extend the drawdown toward the next major support band.
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Why does this drawdown matter for the broader cycle?
A half-trillion-dollar wipe in roughly six weeks resets positioning across the board, forces out leveraged longs, cools ETF inflows, and marks the first sustained risk-off event since the late-2024 rally began.
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