Crypto Market Loses $900B in 22 Days: Is This the Start of a Deeper Crash


 

Crypto Market Suffers Sharp Sell-Off as Bitcoin Price Falls

The cryptocurrency market is facing one of its steepest declines in recent months, with total market capitalization dropping to $2.31–$2.43 trillion, levels last seen in April 2025. In just 22 days, more than $900 billion has been wiped out, leaving investors scrambling to understand the causes of the crash.

Bitcoin and Ethereum Lead the Downturn

Bitcoin (BTC) has led the sell-off, sliding toward the $70,000–$71,000 range after falling more than 6% in a single session. From recent highs near $90,000, Bitcoin is now down about 23%. Ethereum (ETH) has suffered even heavier losses, plunging nearly 32% from $3,050 to around $2,070, breaking below key support levels.

Liquidations Accelerate the Decline

Leverage has amplified the pain. More than $320 million in long positions were liquidated in less than 24 hours, while total wiped-out leveraged positions exceeded $755 million. Across the market, losses crossed $833 million, as forced selling cascaded through exchanges.

ETF Outflows Add Pressure

Investor withdrawals from U.S. spot crypto ETFs have intensified the downturn. On February 4, spot Bitcoin ETFs recorded net outflows of $545 million, with BlackRock’s IBIT fund alone losing $373 million. Ethereum spot ETFs also saw outflows totaling $79.48 million, adding to the selling pressure.

Altcoins Hit Hard

The weakness has spread across altcoins:

  • XRP dropped nearly 12% in a day, falling below $1.45.

  • Solana (SOL) slid under $95, now trading near $92—its lowest since 2024.

  • Avalanche (AVAX) is testing long-term support near $9.

XRP’s decline has been accompanied by a steep fall in open interest, signaling reduced participation from derivatives traders.

Macro Uncertainty Weighs on Crypto

The sell-off mirrors weakness in traditional markets like the S&P 500 and gold. Investor hopes for U.S. interest rate cuts have faded, with markets assigning a 90% probability that rates will remain between 3.50% and 3.75% at the March Federal Reserve meeting. Tight monetary policy continues to weigh on risk assets, including crypto.

Large Bitcoin Sales Increase Fear

Adding to the pressure, Bhutan sold $22.4 million worth of Bitcoin this week, as its crypto holdings fell more than 70% from a peak of $1.4 billion to about $412 million. Large sales during downturns often amplify investor fear and accelerate declines.

Sentiment Hits “Extreme Fear”

The Crypto Fear & Greed Index has plunged to 11, signaling “Extreme Fear.” Retail confidence has dropped sharply, reflecting the stress across the market.

Outlook

The crypto crash is being driven by a combination of ETF outflows, leveraged liquidations, macroeconomic uncertainty, and large institutional sales. While extreme fear often precedes recovery phases, the current environment suggests volatility will remain elevated until liquidity stabilizes and macro conditions improve.

Comments

Post a Comment

Popular posts from this blog

Bitcoin Falls 40% From Highs: Is Digital Gold Losing Its Shine?

Image
  Bitcoin’s Price Plunge Raises Questions About Its “Digital Gold” Status Bitcoin, the world’s largest cryptocurrency, has fallen sharply from its October all-time high of $125,000 , now hovering near $75,000 —a drop of roughly 40% . According to CoinMarketCap, the broader crypto market has shed $1.75 trillion in value since those highs, underscoring the fragility of investor sentiment. Gold Outshines Bitcoin The downturn has reignited debate over Bitcoin’s role as “digital gold.” Traditionally seen as a hedge against uncertainty, Bitcoin has underperformed compared to physical gold during recent geopolitical tensions, including disputes over Greenland. For the first time, gold has outperformed Bitcoin over a five-year period. While gold has surged 68% since February 2025, Bitcoin has dropped 32% . This divergence challenges the narrative that Bitcoin can reliably serve as a safe-haven asset. Micro Concerns: Quantum Computing and Regulation Beyond macroeconomic pressures, Bitcoin...
Read more

Bitcoin Falls to $67K: Is Digital Gold Losing Its Shine Against Real Gold?

Image
  Bitcoin’s Plunge Accelerates as Investors Flee Risk Bitcoin’s sharp decline continued Thursday, dropping to around $67,000 , its lowest level since October 2024. The move highlights how quickly sentiment can shift in crypto markets when investors turn away from risk. Just months ago, Bitcoin surged past $125,000 , setting new records. Since then, the digital currency has lost nearly half its value, underscoring its volatility compared to traditional safe-haven assets. Gold Outshines Bitcoin The contrast with gold has become striking. Since February 2025, Bitcoin has fallen 32% , while gold has soared 68% . This year alone, gold is up more than 14% , while Bitcoin is down over 20% . Investors are rotating into safer assets like Treasury bonds, silver, and gold, leaving crypto exposed. ETF Outflows and Investor Pain Analysts note that inflows into Bitcoin ETFs, which fueled last year’s rally, have now dried up. Citi estimates that Bitcoin has fallen below the average entry price of...
Read more
Image
  Solana’s RWA Market Gets a Boost With Instant Liquidity Facility Institutional investors in tokenized real-world assets (RWAs) on Solana are gaining a powerful new tool: instant redemptions. Multiliquid and Metalayer Ventures have unveiled a liquidity facility designed to provide immediate conversions of tokenized assets into stablecoins, addressing one of the biggest challenges in scaling tokenized markets. Bridging the Gap Between TradFi and Tokenization The facility is managed by Metalayer Ventures, with infrastructure and market support provided by Uniform Labs , the developer behind the Multiliquid protocol. According to Will Beeson, founder and CEO of Uniform Labs, this innovation mirrors traditional finance mechanisms like repo markets and prime brokerage, which have long been absent in tokenized markets. “This is the liquidity infrastructure that institutional RWA markets will require at scale,” Beeson explained, highlighting how the facility fills a structural gap that...
Read more