The crypto market remains under intense pressure as bearish sentiment deepens across digital assets. Bitcoin dropped nearly 5% on Monday, briefly dipping below the $90,000 mark, while Ethereum extended losses—down over 10% in just two days. Solana tumbled around 15%, and Dogecoin shed approximately 13%, reflecting broad-based sell-offs that have now stretched into multiple weeks.
Despite intermittent signals of institutional accumulation, investor confidence continues to wane. The broader blockchain ecosystem is still reeling from last week’s historic exchange hack—the largest in crypto history—adding to growing concerns about security and market stability.
👉 Discover how leading investors are navigating this volatile market cycle.
Extended Downturn Challenges Market Resilience
Market fatigue has become increasingly evident, with Arca Chief Investment Officer Jeff Dorman noting that the current slump has now lasted for eight consecutive weeks. “Traditional markets like equities, fixed income, and even gold remain unaffected by the same macro indicators supposedly driving crypto weakness,” Dorman observed. “Yet only cryptocurrencies continue to fall.”
This divergence suggests that internal factors—not macroeconomic shifts—are primarily responsible for the downturn. Key contributors include collapsing meme coin projects, eroding investor trust, and a notable absence of fresh capital flowing into new token offerings.
According to Arca’s digital asset research, most tokens have lost between 30% and 80% of their value since mid-December. While Bitcoin has shown relative resilience, many altcoins are experiencing severe drawdowns, highlighting a widening performance gap within the crypto ecosystem.
Bitcoin Accumulation Amid Market Woes
In a counter-trend move, Strategy (formerly MicroStrategy) announced it acquired approximately 20,356 additional bitcoins between February 18 and February 23 at an average price of about $97,780 per BTC, totaling roughly $1.99 billion. As confirmed by co-founder and Executive Chairman Michael Saylor via social media, the company now holds 499,096 BTC—worth approximately $33.1 billion at current valuations.
This strategic accumulation underscores a long-term bullish conviction despite short-term volatility. With this latest purchase, Strategy controls more than 2.3% of Bitcoin’s total fixed supply, reinforcing its role as one of the largest corporate holders of the asset.
👉 See how major institutions are reshaping crypto investment strategies in 2025.
Such moves highlight a growing trend: while retail sentiment sours, select institutional players view prolonged downturns as buying opportunities. However, this dynamic also contributes to increasing centralization concerns within the Bitcoin economy.
Altcoins Under Siege: Supply Pressure and Narrative Gaps
The altcoin market faces mounting challenges beyond sentiment. Solana’s market capitalization has declined by nearly $50 billion over the past month—a drop attributed partly to a high-profile scandal involving Argentine President Javier Milei and a now-defunct meme coin named Libra. Though unaffiliated with Solana’s core protocol, the association damaged public perception during a fragile market phase.
Additionally, upcoming token unlocks add structural pressure. Research firm Messari reports that approximately $1.72 billion worth of SOL tokens are scheduled to be unlocked on March 1, increasing circulating supply without corresponding demand growth.
Edward Chin, co-founder of Parataxis, explains: “With continuous unlocks flooding the market, investors are simply selling. Most participants here are already long exposure—there’s little fresh capital entering altcoins. New inflows are favoring Bitcoin instead.”
This trend reinforces Bitcoin dominance, which has steadily climbed as capital rotates out of speculative assets. Without compelling narratives or utility upgrades, many altcoins struggle to retain investor interest in risk-off environments.
Exchange Fallout and Ecosystem Ripple Effects
Even after Bybit announced plans to fully compensate users for losses stemming from last week’s $1.4 billion hack—one of the most damaging breaches in crypto history—confidence remains shaken. The exchange temporarily borrowed and purchased Ethereum to meet withdrawal demands, further stressing ETH liquidity during an already fragile period.
The incident has reignited debates about custodial risk, insurance frameworks, and the need for enhanced on-chain transparency. Although Bybit’s response was swift, the psychological impact persists across centralized platforms.
Market-linked equities have mirrored crypto’s decline. Coinbase shares extended losses for a sixth straight day. MicroStrategy dropped about 5.7% on Monday alone and is now negative year-to-date. Bitcoin miner MARA Holdings Inc. fell roughly 5.3% on Monday after losing 13% the previous week.
These movements reflect tightening correlations between crypto-native firms and underlying digital asset prices—particularly during downturns.
Core Keywords:
- Cryptocurrency market crash
- Bitcoin price drop
- Ethereum decline 2025
- Altcoin sell-off
- Market sentiment 2025
- Bitcoin dominance
- Crypto institutional investment
- Token unlock pressure
Frequently Asked Questions (FAQ)
Q: Why is Bitcoin falling if institutions are still buying?
A: While companies like Strategy continue accumulating Bitcoin, their purchases may not be enough to offset large-scale retail selling and leveraged liquidations. Market psychology often drives short-term price action more than fundamentals during periods of panic.
Q: What causes altcoins to drop more than Bitcoin?
A: Altcoins typically carry higher risk profiles and depend heavily on market sentiment and speculative narratives. During downturns, investors de-risk by moving into perceived safe-haven assets like Bitcoin, leaving altcoins vulnerable to disproportionate declines.
Q: How do token unlocks affect cryptocurrency prices?
A: Scheduled token unlocks increase circulating supply without guaranteed demand. If holders sell immediately upon unlock—as often happens—this creates downward price pressure, especially in weak markets.
Q: Is the recent hack affecting Ethereum’s price directly?
A: Not directly through protocol vulnerabilities, but exchange hacks trigger broader trust issues. When platforms like Bybit face liquidity strain and must source ETH externally, it increases selling pressure and fuels fear across the ecosystem.
Q: Can meme coin failures really impact the overall market?
A: Yes—especially when high-profile cases go viral. Failed meme coins erode retail confidence and result in significant capital destruction. These losses often lead to reduced participation across all crypto sectors.
Q: Will Bitcoin regain strength if altcoins keep underperforming?
A: Historically, yes. Periods of strong Bitcoin dominance tend to precede broader market recoveries. Once macro conditions stabilize and narratives return to altcoins, capital may begin rotating back—potentially triggering the next bullish cycle.
👉 Explore real-time data and tools used by top traders to time market reversals.
As the crypto market navigates this extended correction, clarity will come not from short-term price movements but from structural shifts in ownership, regulation, and innovation. For now, patience and disciplined risk management remain essential for surviving—and eventually thriving—in this evolving landscape.