What’s next after latest crypto crashes wipe out over 7% of the market?

The latest crypto crashes have wiped out more than 7% of the market cap, declining from levels above $2.50 trillion to $2.32 trillion as of press time. Bitcoin led this capital outflow, losing more than $10K of the value of a single token. Its market cap dropped from $1.50 trillion to $1.34 trillion while the price moved from above $77K to $67K. The move came as major institutions like Strategy announced the sale of 32 BTC for the first time since 2022. Crypto market crashes as Bitcoin leads the pack On the charts, Bitcoin [BTC] failed to reclaim a CME Gap between $78K and $79K and dropped to the $67K price range. That translates to a wipeout of more than $250 billion in less than a week. In general, the Derivative market liquidated more than $700 million in long positions in the past 24 hours. Of this amount, $283 million was wiped out in just an hour. The volatility of the market surged to 20%, the biggest single-day spike in four months since February's 55%. Moreover, the Crypto Fear & Greed Index dropped to 11, indicating extreme anxiety levels. As the recent crypto crashes wiped out 7% of the total cap, here is what could happen next for the market: What's next for crypto and Bitcoin? Traders should reassess their long positions because they are likely to obliterate liquidation levels below current levels. A cascade of orders below $67,404 across multiple exchanges would hit the market. Additionally, the broader retail sector is likely to detest crypto due to the increasing scams and rug pulls. AI has resulted in a spike of more than 500% in these cases. Wall Street joined this economy to ensure 24/7 trading of crypto and equities, among other asset classes, through tokenization. That way, Wall Street could take over crypto and leave everyone buying paper card derivatives. More importantly, there was a shift in trading from crypto to tokenized equities, ETFs, and IPOs after the CFTC approval of BTC perpetual futures. For instance, much of the capital had shifted to IPOs like SpaceX, OpenAI, Anthropic, and Kraken, among others. These IPOs were similar to the IPO of Coinbase [COIN]. Hence, the stock market was making new highs, as seen in the S&P 500 and Nasdaq indices. It's worth noting that, over time, the crypto market could become larger once the dust settles, as trendy narratives tend to revert to their mean positions. As a result, this capital would eventually shift back to cryptocurrencies. Final Summary The latest crypto crashes have resulted in the market losing more than 7% of its cap, with about $250 billion wiped out from Bitcoin's cap in less than a week.  Traders reassess their long positions, while retailers detest crypto due to scams, and Wall Street slowly takes over crypto.