The global cryptocurrency market experienced a significant downturn in the week ending February 22, 2025, shedding approximately $200 billion in market capitalization.
According to data tracked by Nairametrics, the total market value dropped from $3.37 trillion to $3.17 trillion, reflecting a 5.93% decline.
The downturn affected major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH), both of which experienced notable price drops.
Bitcoin traded at $96,566, reflecting a 1.11% weekly loss and an 11.26% decline from its all-time high of $108,786, recorded on January 20, 2025. Ethereum (ETH) also took a hit, losing 15.5% of its value in the past week, trading at $2,734.24, a 43.95% decline from its peak price of $4,878.26.
The bearish trend extended to other major altcoins, including Binance Coin (BNB), which also registered significant losses.
A major security breach at cryptocurrency exchange Bybit has been identified as a key trigger for the market downturn. The hack, which occurred on February 21, saw 401,346 ETH (worth $1.4 billion) stolen, making it the largest crypto theft in history.
The security breach resulted in panic selling across the market, with millions of liquidated positions in various cryptocurrencies. Data from Coinglass shows that over $544 million worth of open positions were liquidated within 24 hours, exacerbating market instability and deepening the bearish trend.
Current market performances
Despite the losses, Bitcoin’s market dominance remains strong at $1.91 trillion, accounting for 60.1% of the total cryptocurrency market. Ethereum follows with $330.22 billion, representing 10.3% of the market.
Stablecoins such as USDT, USDC, and TUSD collectively hold $214.51 billion (7%), while other cryptocurrencies account for $727.95 billion, representing 23% of total market capitalization.
Despite the widespread market decline, a few cryptocurrencies recorded impressive gains above 50% between February 16 and February 22, 2025.
Top gainers were:
- Story (IP): +166.80%
- Sonic (S, previously FTM): +62.10%
- Maker (MKR): +52.40%
On the other hand, some cryptocurrencies experienced significant losses.
Top losers were:
- Raydium (RAY): -15.8%
- Official Trump (TRUMP): -14.46%
- Jupiter (JUP): -12.51%
These rankings are based on an analysis of the top 100 cryptocurrencies from CoinMarketCap.
What you should know
The Market Fear and Greed Index dropped to 38 this week from 41 the previous week, signaling a shift from greed to fear. This decline reflects growing uncertainty and a cautious stance among investors.
- Furthermore, Bitcoin’s dominance has slightly increased to 60%, up from 59.7% the previous week. This suggests that investors are moving funds into BTC as a safe haven amid prevailing market fears.
- Meanwhile, blockchain analytics firm Arkham has linked the Bybit hack to Lazarus Group, a North Korean cybercriminal organization known for targeting crypto firms.
Reports indicate that the hackers attempted to transfer the stolen ETH to ChainFlip for conversion into BTC. However, ChainFlip has taken action by disabling certain front-end services to slow the movement of funds.
