- Solid liquidations and the Bybit-Hack have caused a market sale of $ 150 billion
- Falling capital inflow and rising risk as version continue to deduct the liquidity from the crypto markets
The cryptocurrency market is confronted with a serious sale, with large assets that lose billions in value. At the time of the press, Bitcoin [BTC] wax Trade on $ 88,993, a decrease of 7.21% in the last 24 hours. Ethereum, XRP and Solana also had double digits losses. Ethereum fell by 10% to reach $ 2,426, XRP fell by 10.99% to reach $ 2.21, while Solana lost 12.62% of its value to act at $ 139.37.
This sharp decline is fed by several factors, including massive liquidations, decreasing capital inflow and increasing risk aversion among investors. So what exactly does this collapse causes?
Solid liquidations and the Bybit -hack – a perfect storm for crypto
The cryptomarkt saw $ 340 million liquidated in just one hour, erased with more than $ 150 billion in the last 24 hours. This extreme volatility has caused widespread panic sales, leading to steep losses across the board.
The Bybit Hack on February 21, 2025 worsened the crisis and gave an enormous blow to the trust of investors. The stock exchange suffered $ 1.4 billion in losses, making it the biggest financial robbery in history.
Arkham Intelligence compared The $ 1 billion from the Iraq’s central bank in 2003, which emphasizes the unprecedented scale of the attack. Because investors pick up funds from stock markets to prevent exposure, the liquidity dries up and feeds the sale.
Source: X
Capital inflow and rising risk axis – Why Crypto is struggling
Another alarming factor is the dramatic decrease in capital influx. According to Ali Martinez, the inflow into the cryptomarket cellar With almost 50% in the last 10 days, shrinking from $ 52 billion to $ 26.5 billion.
This decline means that fewer new funds enter the market, making it more difficult for assets to return through steep losses. Without strong intake, the liquidation cascades accelerate, leading to deeper market accidents.
At the same time, investors shift away from risky assets such as Bitcoin as volatility peaks in traditional markets.
For example – the Volatility Index (VIX) rose by 21.74%in just five days, indicating the uncertainty in the global financial markets. Historically, when risky appetite decreases, investors dump speculative assets, in which the decline of the crypto market deteriorates.
Source: X
Anxiety and greed index confirms panic
Investor sentiment is also rapidly deteriorating, as reflected by the crypto fear and greed index. At the time of writing it had a lecture of 29 (fear). Yesterday it was still neutral at 40 and a month ago the market was in greed mode at 61.
Such a rapid shift means that traders leave functions for fear, so that the market is further accelerated. Although extreme anxiety can sometimes indicate a possible buying option, the absence of capital inflow and continuous panic sale can make a quick recovery unlikely.
Source: Coinmarketcap
So why crashes crypto? The deterioration of the market is not due to a single cause, but a combination of devastating factors.
The Bybit -Hack has shattered confidence, liquidations have an intensified sales pressure, the inflow of capital has collapsed and the global markets are becoming more volatile. This has forced investors to leave risky positions.
The cryptomarkt depends on the liquidity to retain price levels and the liquidity is currently disappearing. Unless the inflow restores and the market sentiment improves, the sale can continue.