Article Summary

**Cryptocurrency Market Faces $100 Billion Selloff as Bitcoin Drops 4% Despite Stock Market Rally** The cryptocurrency market experienced a dramatic $100 billion decline in total market capitalization Wednesday, with Bitcoin plummeting over 4% to approximately $111,000. This massive crypto selloff created a stark divergence from traditional markets, as the S&P 500 simultaneously reached new all-time highs ahead of the crucial Federal Reserve interest rate decision. Market analysts attribute the cryptocurrency decline primarily to sector-specific positioning and capital flows rather than broader macroeconomic risk-aversion sentiment. The sharp Bitcoin price movement highlights the digital asset's continued volatility and its occasional decoupling from traditional financial markets during key economic events. This dramatic market divergence underscores the unique dynamics driving blockchain-based investments compared to conventional equities. Cryptocurrency traders are closely monitoring Federal Reserve monetary policy signals, as interest rate decisions historically impact digital asset valuations and DeFi protocol performance. The substantial market cap reduction reflects ongoing institutional repositioning in the cryptocurrency space, with Bitcoin's price action serving as a key indicator for broader altcoin market sentiment and blockchain investment flows.