The cryptocurrency market has experienced a catastrophic decline, shedding over $1 trillion in value within just six weeks. Bitcoin, once trading at an all-time high, has now plummeted to around $90,000, marking a seven-month low and erasing all gains made in 2025. Analysts are raising alarms, suggesting that the current sell-off signals a new era for crypto markets, while fears related to macroeconomic conditions and risk aversion among investors have worsened the outlook. Major trading platforms are seeing significant movements of Bitcoin, indicating a potential capitulation among short-term holders. Despite a slight rebound, the overall sentiment remains pessimistic as traders retreated from speculative assets and grapple with the implications of a larger market correction.