Crypto Market Sheds $1T in Value Amid Selloffs

The cryptocurrency market has suffered a severe downturn in recent weeks, erasing more than $1 trillion in value since Bitcoin's peak above $126,000 in early October. As of Monday, Bitcoin traded around $82,000, down from its recent high and reflecting broader volatility that has prompted corporate holders to liquidate assets and institutional players to explore new investment vehicles.

This rout, which began accelerating last Friday, has hit digital asset treasury companies hardest. These firms, which amassed large cryptocurrency reserves to bolster their balance sheets and stock prices, now face a vicious cycle of declining token values dragging down shares, leading to forced sales. Industry data shows $77 billion wiped from the sector's market capitalization since July, when it peaked at $176 billion. MicroStrategy, the largest corporate Bitcoin holder led by Michael Saylor, saw its stock fall 50 percent over the past three months. Other companies followed suit: FG Nexus sold $41.5 million in Ethereum for share buybacks, Florida-based ETHZilla offloaded about $40 million in Ethereum, and French firm Sequans Communications dumped $100 million in Bitcoin to service debt....