- Bitcoin fell 7% to $88,993; Ethereum dropped 10% to $2,426. The market lost $150 billion in 24 hours.
- A $1.4 billion breach at Bybit on Feb 21 spurred withdrawals, eroding trust and draining market liquidity.
The cryptocurrency market has shed $150 billion in value within 24 hours, with Bitcoin dropping to $88,993 and Ethereum falling to $2,426. XRP and Solana also declined by 11% and 13%, respectively. Analysts point to a mix of immediate triggers and broader pressures driving the sell-off.
Three interconnected issues stand out. First, rapid price swings led to $340 million in forced trader closures within 60 minutes. These closures prompted rapid selling, lowering prices further and triggering additional closures.
Second, a security breach at Bybit on February 21 resulted in losses of $1.4 billion. ETHNews analysts compared the incident to high-profile thefts in traditional finance, such as the 2003 Central Bank of Iraq robbery. The breach accelerated withdrawals from trading platforms, reducing available funds for transactions.
Third, new money entering the market has fallen sharply. ETHNews data shows inflows dropped from $52 billion to $26.5 billion over 10 days. This contraction limits the ability of prices to stabilize after drops.
Capital inflows into the crypto market have dropped nearly 50% in the past 10 days, declining from $52 billion to $26.5 billion. pic.twitter.com/m9DWHiyQPn
— Ali (@ali_charts) February 24, 2025
Concurrently, traditional markets show rising instability. The Volatility Index, which measures stock market turbulence, rose 22% in five days. Investors are increasingly avoiding assets perceived as unstable, including cryptocurrencies.
The Crypto Fear and Greed Index now sits at 29, down from 61 a month ago. This shift suggests traders are prioritizing short-term exits over holding positions. Historically, extreme fear can precede rebounds, but analysts note that recoveries require fresh capital and restored trust—both currently lacking.
The combination of security failures, leveraged trading mechanics, and macroeconomic uncertainty has created a cycle of decline. Reduced participation and ongoing withdrawals make it difficult for prices to find stability.
Unless new funds enter the market or external pressures ease, downward trends could extend. The situation underscores the fragility of asset classes reliant on consistent participation and operational security.
The current price of Bitcoin (BTC) is $88,068.55 USD, reflecting a 6.52% decline in the past 24 hours. Over the last week, BTC has dropped 6.44%, indicating increased selling pressure in the short term. Despite this correction, Bitcoin remains strong, with a 16.0% gain over the past month and a 70.2% increase over the past year, demonstrating its long-term resilience.
From a technical analysis perspective, BTC has been fluctuating within a 24-hour range of $86,141.80 to $94,250.78 USD. The key support levels to watch are $86,000 and $84,500 USD, where buyers may step in to prevent further declines.
On the upside, resistance levels are found at $90,000 and $92,500 USD. If BTC successfully breaks above these resistance zones, it could aim for the $95,000 USD level, with the potential for further gains if bullish momentum returns.
