The total cryptocurrency market capitalization has fallen back below the $3 trillion threshold. This decline was driven by a sharp selloff in Bitcoin, which dropped approximately $4,000 within a two-hour window, triggering a cascade of liquidations. Market data initially indicated that $400 million worth of positions were liquidated during the move, alongside broader declines in US stock futures that signaled a risk-off sentiment. Further market analysis reveals a deeper shift in momentum, with Bitcoin dipping below the $88,000 mark. The sell-off has been particularly severe for the Layer 2 sector, with major assets like Starknet and zkSync recording declines of over 10%. Observers note that this price action reflects increasing uncertainty and a liquidity drain from risk assets. [Update 1] New reports confirm the market cap remains below the $3 trillion support level. Bitcoin has tested levels under $88,000, and altcoins, specifically Layer 2 tokens, are leading the decline, reinforcing the narrative of a broad market correction due to liquidity constraints.