Bitcoin and Ethereum post their steepest weekly slide since the FTX collapse
CoinMarketCap says crypto markets saw an unusually broad, synchronized selloff this week, sending Bitcoin and Ethereum to their biggest weekly drops since the FTX collapse in November 2022. The pullback slashed overall digital-asset market value and triggered heavy liquidations across leveraged positions.
Total crypto market capitalization fell by about $390 billion over the week. By the weekend, Bitcoin was down 17.3% on the week, holding just above $61,000, while Ethereum sank 22% to around $1,550. Prices steadied modestly on Saturday, but both tokens remained near weekly lows.
TradingView data show the market cap slipping back to just above $2 trillion, a sharp retreat from the peak near $4.2 trillion in October last year. The brunt of the damage hit leveraged longs. CoinGlass estimates roughly $7 billion in crypto leveraged positions were liquidated during the week, including about $5.7 billion in long positions. Liquidations were most concentrated on Monday and Friday, forcing out bullish bets and amplifying volatility.
ETF outflows and macro expectations weigh on sentiment
The retreat did not stem from a single catalyst, but from several negative drivers compressed into a short window. Early in the week, Strategy disclosed its first Bitcoin sale in nearly four years. The sale was small—only 32 bitcoins, about $2.5 million—but it undercut expectations of steady corporate buying. Attention then shifted to whether Strategy could sell more Bitcoin to meet obligations as its preferred stock financing expands, adding pressure to sentiment.
At the same time, Bitcoin spot ETFs continued to see outflows. Vetle Lunde, research director at K33 Research, has previously said some withdrawals may reflect capital rotating from crypto into AI-related investments.
AI-linked security scare and rising Treasury yields add to volatility
Another shock came from Zcash. After researchers found a critical vulnerability in its privacy system using Anthropic’s latest AI model, ZEC fell more than 40%, stoking broader concerns about protocol security.
Macro headwinds also strengthened late in the week. Stronger-than-expected U.S. employment data on Friday pushed investors to reassess the Federal Reserve’s policy outlook. Expectations for rate cuts this year weakened, and some market participants began pricing in the possibility of another rate hike if inflation proves persistent. U.S. Treasury yields rose and the Nasdaq 100 dropped sharply, cooling risk appetite and weighing on crypto.
By the weekend, with U.S. stock markets closed, selling pressure eased temporarily and major tokens stabilized in the short term, though prices remained near the week’s lows.
