While crypto enthusiasts were busy making moon memes, the digital asset market took a nosedive that would make even seasoned traders reach for the barf bag. A staggering $200 billion vanished from the crypto market in a single day on February 22, 2025, sending the total market cap plummeting from $3.37 trillion to $3.17 trillion—a brutal 5.93% decline.
At the center of this financial bloodbath was Bybit’s security breach, now crowned the largest crypto heist in history. Hackers made off with 401,346 ETH, worth a jaw-dropping $1.4 billion. Panic ensued. Investors fled. The market crashed harder than a toddler after a sugar rush. Network congestion slowed transaction times to a crawl as panicked traders rushed to move their assets.
Bitcoin, despite maintaining its 60.1% market dominance with a $1.91 trillion market cap, wasn’t immune to the carnage. It’s now trading at $96,566, down 11.26% from its all-time high of $108,786. Ether got hammered even worse, plunging 15.5% over the past week to $2,734.24. The second-largest cryptocurrency has fallen 43.95% from peak since its all-time high of $4,878.26.
Adding fuel to the crypto dumpster fire, Trump announced new tariffs on China, Canada, and Mexico. This spooked investors already on edge about inflation and economic stability. The result? A mass exodus to safer assets and $950 million in long positions liquidated within 24 hours. Ouch.
The Fear and Greed Index crashed to 25—”extreme fear” territory—down from 49 the previous day. It’s one of the sharpest drops since September 2024. Meanwhile, institutional investors pulled over $1 billion from Bitcoin ETFs in just two weeks.
Market sentiment has plunged into extreme fear as institutional money flees crypto faster than rats from a sinking ship.
Not all hope is lost, though. Trump’s administration is expected to be crypto-friendly, and stablecoin legislation is anticipated later in 2025. Bitcoin’s long-term holders have been steadily increasing since mid-2024, suggesting at least some diamond hands remain in the market. Despite the market turmoil, approximately 75% of owners still hold Bitcoin, demonstrating its persistent dominance in the cryptocurrency space.
For now, crypto traders are left staring at blood-red charts, wondering if they should’ve stuck with their day jobs. The market remains volatile, unpredictable, and absolutely not for the faint of heart.
