The crypto market is experiencing a significant downturn, mirroring a broader sell-off in traditional markets due to heightened geopolitical tensions and economic uncertainty.

Bitcoin, the most popular cryptocurrency, took a severe hit, falling below the $66,000 mark during US trading hours after reaching a high of nearly $71,000 just hours earlier. As of now, Bitcoin has recovered slightly, trading at $69,934, a 5% drop in the past 24 hours.

Ethereum, the second-largest cryptocurrency, also suffered a dramatic 12% drop to $3,100 before recovering to $3,230. The decline was swift and brutal, with over $400 million in leveraged positions liquidated in just one hour.

Binance traders were hit the hardest, with $171 million in liquidations, while OKX traders saw $158 million wiped out. In total, the market saw $860 million in damages across 270,993 traders in the past 24 hours.

The downturn coincided with a dip in US stock markets, reacting to new inflation data indicating a third consecutive month of acceleration. This unexpected Consumer Price Index (CPI) print has dampened any remaining optimism for near-term Federal Reserve interest rate cuts, casting a shadow on hopes that inflation was close to being under control.

Despite the market turmoil, Bitcoin's market dominance has increased to nearly 56%, reinforcing its position as the leading cryptocurrency.

The crypto community is looking ahead to the upcoming halving event on April 21, with historical trends and expert opinions suggesting that the event could trigger more price corrections. Today's market movements reflect a complex interplay of investor sentiment, economic indicators, and major crypto events.