Crypto market loses about $1 trillion in value since the start of the year

Global cryptocurrency markets have shed roughly $1 trillion in value since the beginning of the year, according to a Bloomberg report, dampening appetite among retail investors and digital-asset funds. Bitcoin has fallen 28 percent, while a small-cap crypto index has lost more than 40 percent, with Dogecoin, Solana and ADA each dropping close to half their value. The pullback has prompted major platforms to trim the range of listed tokens and to see thinner trading volumes. Grayscale Investments has dropped plans for exchange-traded funds tied to Cardano, Polkadot and Hedera, while Bitwise has closed two funds, Rex Advisers has shut a group of funds, and Direxion has wound down its Lambo and RECT products. Trump Media has also canceled a planned joint crypto fund covering Bitcoin and Ether. Roxana Islam, head of sector and industry research at VettaFi, said interest in smaller cryptocurrencies has fallen below the level needed to cover the operating costs of some products. David Towle of ProChain Capital said that interest is shifting toward established large fund managers, as investors rotate into areas such as artificial intelligence and prediction markets and reassess the cost and return structure of digital-asset investment products.