Crypto Market Crash Wipes Out $370 Billion in a Week; Bitcoin at 3-Month Low

The crypto market is facing a sharp drop today, with its total value falling nearly 8% to around $2.90 trillion. This has made the entire crypto market losing over $370 billion in value since last week. The sudden crash has also led to massive liquidations, with $110 billion lost in the last 24 hours.

Bitcoin, the largest cryptocurrency by market cap, has dropped nearly 8%, reaching a three-month low of $87,000 before settling at $89,470.

Crypto Markets Are Bleeding

Altcoins have suffered even worse losses. Ethereum, XRP, Solana, and Cardano have all dropped between 10% and 20%. Memecoins, which were booming recently, have also crashed—Dogecoin is down almost 10%, followed by Shiba Inu, Pepe, and the Official Trump token.

One major factor behind the sell-off was a statement from President Donald Trump Donald Trump   Donald J. Trump is a US-based entrepreneur, Pro-crypto Politician, and the 45th and 47th President of the United States of America. He understands the importance and needs of the modern fintech world, and people look up to him as a dominant pro-crypto leader.   Quick Facts   Full name Donald John Trump Birth 14-06-1946, New York, United States Nationality American Education BS from the University of Pennsylvania Known For Businessman, Pro-Crypto Politician   Once doubtful about Bitcoindominance, he said in a tweet in 2019, “I am not a fan of Bitcoin", but now has a significant amount of cryptocurrency holdings in his kitty. He has also signed an Executive Order to establish a Strategic Bitcoin Reserve, which highlights his commitment to the future of cryptocurrency.   Donald Trump - Career Highlights & Events   2016 – Elected as the 45th President of the United States from the Republican Party.   2017 – Signed the Tax Cuts and Jobs Act, impacting investment environments   2019 – Criticized Bitcoin and Libra on X, dubbing them as "not money"   2024 – Campaign signals potential openness to crypto-friendly reforms   2025 –  Elected as the 47th President of the United States from the Republican Party.   A meme coin, $TRUMP, is associated with Donald Trump, which is listed on the Solana blockchain platform. His family also backs World Liberty Financial (WLF), a crypto venture.     President , confirming that the U.S. would move forward with tariffs on goods from Canada and Mexico. He claimed the U.S. has been treated unfairly and confirmed that tariffs would proceed as planned. This raised concerns that a previously expected pause on tariffs might not happen, shaking investor confidence.

Citadel’s Crypto Move Backfires

Surprisingly, Citadel Securities’ entry into the crypto market also contributed to the downturn. The $65 billion financial giant announced that it would become a liquidity provider in crypto. Instead of boosting confidence, this news triggered more selling, as traders reacted negatively.

Adding to the chaos, crypto exchange Bybit was hit by a major hack on February 21st. According to Arkham Intelligence, this could be the largest financial hack in history, even surpassing the $611 million PolyNetwork exploit in 2021. Hacks like this shake trust in the market and make investors more cautious.

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•   Wall Street Giant Citadel Securities to Begin Crypto Trading, Boosting Liquidity
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Is This Just a Dip or a Prolonged Crash?

While the market looks rough right now, history shows that crypto has bounced back from big drops before. Bitcoin has fallen 10% or more many times in past bull runs and has always recovered stronger.

But with uncertainty in traditional markets as well, investors are being extra cautious. The big question is whether this is just a temporary dip—or the start of a bigger downturn. Only time will tell.

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