The crypto market had another sluggish run in the past 24 hours as total crypto market cap is down 7% and now around $2.92 trillion in total. Let’s try to understand why is the crypto market alongside BTC price crashing today.
What you'll learn 👉
Market Bloodbath: What You Need to Know
It’s been a bloody day across the board for crypto. Bitcoin and Ethereum, the market leaders, have shown significant weakness, with BTC dropping below $90,000 and ETH wicking down to under $2,400. This downward pressure has triggered massive liquidations, with total wipeouts across exchanges hitting $948 million—a staggering $880 million of which came from long positions.
The sentiment shift is palpable as the CMC Fear & Greed Index has plunged to 29, indicating “Fear”—its lowest level since September 6. This marks a dramatic shift from the optimistic sentiment that prevailed just days ago.
It's been a bloody day across the board for crypto.
— Miles Deutscher (@milesdeutscher) February 25, 2025
If you missed the past 24 hours, here's your full recap – no fluff, just facts.
🚨—- Major Headlines —-🚨
→ $BTC and $ETH show signs of weakness, with $BTC dropping to $90.9K and $ETH wicking down to $2,460.
→ Total… pic.twitter.com/4L11QdqvbO
Regulatory Developments Amid the Chaos
Despite the market turbulence, there have been notable regulatory developments. The SEC has closed its investigation into Robinhood without taking any action, while OKX settled its DOJ investigation with an $84 million penalty. On a more positive note, the SEC has acknowledged Grayscale’s spot ADA ETF filing, and Canary has filed for a spot HBAR ETF with Nasdaq.
Michael Saylor has been particularly active, releasing his digital assets framework which he presented to the SEC Crypto Task Force last Friday. The documents outline clearer taxonomy guidelines and steps to establish legitimacy for cryptocurrencies. Additionally, Saylor announced he has deployed his full $2 billion to acquire 20,356 BTC.
The altcoin market is taking an even harder hit than the majors. The “Others” category (market cap excluding the top 10) has bled down to $238 billion, reaching the lowest level since the liquidation event earlier this month. The Solana ecosystem shows particular weakness, with SOL wicking down to $138 (down 16%) and Raydium (RAY) touching $3.00 (down 29%). As SOL bleeds, meme coins are seeing the biggest decline in mindshare (down 2.52%) and are the worst-performing category, down an average of 14%.
Read also: Solana (SOL) Price Drops—But Is a Reversal Toward a New ATH Coming Next?
What This Means for Crypto Investors
This market correction appears to be a natural cooldown after the extended rally we’ve seen in recent months. Profit-taking was inevitable, especially considering Bitcoin’s meteoric rise past $109,000. What’s notable is the magnitude of long liquidations, suggesting many traders were caught off guard by the speed and depth of this correction.
The shift to fear in market sentiment often presents contrarian opportunities for those with a longer-term outlook. While the immediate price action looks painful, the underlying developments—particularly in the regulatory space—continue to show maturation of the crypto ecosystem.
For now, market participants should watch key support levels and monitor whether this correction deepens or if dip-buyers step in. Given the institutional interest that has fueled this bull cycle, this pullback may prove to be temporary.
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