Japan just dropped a bombshell—a proposed 20% flat tax on crypto holdings. Markets? Absolutely wrecked.

Bitcoin nosedived back under $90K, now sitting at $86,523 (down 5%). Ethereum couldn't hold the line either, slipping to $2,836 with a 5.7% drop. The psychological levels everyone was watching? Gone.

But here's where it gets brutal. Altcoins took the real beating. Zcash led the massacre with a 22% plunge. Ethena got hammered down 17%. Dash shed 14%. Celestia and Virtual both dropped 13%. It's a bloodbath across the board.

Total market cap now stands at $3.11 trillion—a figure that would've seemed impossible to lose just weeks ago.

The timing couldn't be worse. Just as global markets were finding some stability, Japan's hawkish tax stance threw a wrench into recovery momentum. Traders are now scrambling to reassess positions, and the fear index is creeping up.

This isn't just about one country's tax policy anymore. It's a stress test for how sensitive crypto markets remain to regulatory signals.