The global cryptocurrency market experienced a sharp decline on February 22, 2025, shedding approximately $200 billion in market value. According to data from News.Az via Nairametrics, the total market capitalization of digital assets dropped from $3.37 trillion to $3.17 trillion, marking a significant 5.93% decline.
Major Cryptocurrencies Suffer Losses
Leading cryptocurrencies were not spared from the downturn, with Bitcoin and Ether both posting substantial losses.
Bitcoin was trading at $96,566, reflecting a weekly decline of 1.11% and an 11.26% drop from its all-time high of $108,786 recorded on January 20, 2025. Ether faced even steeper losses, plunging 15.5% over the past week. It was trading at $2,734.24, a staggering 43.95% drop from its peak price of $4,878.26.
The downward trend also extended to other major altcoins, including Binance Coin (BNB), which saw considerable losses amid the broader market sell-off.
Bybit Security Breach Triggers Market Panic
One of the primary catalysts behind the market decline was a significant security breach at Bybit, a major cryptocurrency exchange. On February 21, hackers managed to steal 401,346 Ether—worth approximately $1.4 billion—making it the largest cryptocurrency heist in history.
The breach sparked widespread panic among investors, leading to a massive sell-off and the liquidation of millions of positions across various digital assets. According to Coinglass data, over $544 million in open positions were liquidated within 24 hours, further exacerbating market volatility and deepening the downward trajectory.
Bitcoin Remains Dominant Despite Market Chaos
Despite the sharp losses, Bitcoin continues to dominate the cryptocurrency market, maintaining a market capitalization of $1.91 trillion, which accounts for 60.1% of the total market value. Ether follows with a market capitalization of $330.22 billion, representing 10.3% of the overall market.
Stablecoins such as USDT, USDC, and TUSD collectively hold a market value of $214.51 billion, making up 7% of the total crypto market. Meanwhile, all other cryptocurrencies combined account for $727.95 billion, representing 23% of the market’s total valuation.
While the market attempts to recover from the steep losses, investors remain cautious amid ongoing security concerns and volatility. The coming weeks will be crucial in determining whether cryptocurrencies can regain lost ground or if further downward pressure will persist.
