Investors in Internet Computer (ICP) experienced a significant downturn recently, with the token's price dropping by 13.6% over the last 24 hours. This decline is not isolated to ICP alone but rather part of a broader market-wide crypto selloff.
The market-wide crypto crash served as the backdrop for ICP's drop, with the total crypto market capitalization falling by approximately 3.3%. Bitcoin's crash from recent highs above $80k toward the low $60ks triggered multi-billion dollar liquidations and long unwinds.
ICP had recently been a key player in the AI-infrastructure narrative, with strong speculative flows and leverage behind it. However, when the macroeconomic and Bitcoin picture deteriorated, this prior strength turned into vulnerability as traders locked in profits and unwound leverage.