The cryptocurrency market is undergoing its worst correction in history, with a sharp 7.69% drop over the past 24 hours, bringing the global market cap to $3.3 trillion.

On-chain data reveals significant sell-offs in traditionally stable assets like Bitcoin and gold, driven by easing tensions in the Middle East and Donald Trump’s tariff threats. These factors, coupled with profit-taking and leverage concerns, have further destabilized the market.

Bitcoin (BTC), which dominates 55.15% of the crypto market, plunged to $91,616, marking a 6.6% drop in 24 hours. Traders are closely monitoring the $91.8K level, as losing this support could lead to a further decline toward $87K. “To me, the $92.5K – $92K area on BTC is very important,” said trader Skew, emphasizing the risk to altcoins if BTC drops further.

Altcoins have also been hit hard, with Solana (SOL) down 9% today and Ethereum ($ETH) and Stellar ($XLM) showing mixed resilience. Stellar surged 330% over the past two weeks, while Ethereum maintained strong performance against other major cryptocurrencies.

Data from CoinGlass shows $689.79 million in cross-crypto liquidations in the past 24 hours, signaling heightened volatility. Analysts attribute the market’s struggles to overheating leverage, with Bitcoin’s unrealized gains reaching 57%, increasing the risk of further corrections.

Adding to the turmoil are Trump’s announced tariffs, including a 10% levy on Chinese imports and 25% on goods from Mexico and Canada, set for January. Trump described the tariffs as essential to protect U.S. interests, but critics warn of escalating trade tensions.

As the market grapples with these challenges, traders are eyeing critical support levels and awaiting signs of stability amid unprecedented volatility.

Source: This is the worst market correction in crypto history; here’s why