ChainCatcher report, according to CoinDesk, during a brutal week for the cryptocurrency market, Bitcoin fell 17.3% this week and Ethereum dropped 22%, with both assets potentially recording their largest weekly declines since November 2022. According to TradingView data, the digital asset market lost approximately $390 billion in market capitalization this week, with total market cap hovering just above $2 trillion—less than half of the nearly $4.2 trillion peak reached in October. The damage extended beyond prices: CoinGlass data shows that approximately $7 billion in leveraged positions across digital assets were liquidated this week, with the heaviest selling pressure occurring on Monday and Friday. Of these positions, about $5.7 billion were long positions. This decline resulted from a confluence of negative catalysts. Early in the week, Strategy disclosed that it had sold Bitcoin for the first time in nearly four years—a small transaction of just 32 Bitcoin, valued at approximately $2.5 million. However, the sale unsettled investors who had long viewed Michael Saylor’s company as a consistent source of demand. Investors also began questioning whether Strategy might need to sell additional Bitcoin to repay debt tied to its growing preferred shares. Meanwhile, assets under management in Bitcoin ETFs continued to shrink. Vetle Lunde, head of K33 Research, noted earlier this week that some of the outflows reflect a broader trend of capital shifting from cryptocurrencies to AI investments. Concerns that AI could expose vulnerabilities in crypto protocols further intensified this pressure. Zcash (ZEC), one of the best-performing cryptocurrencies earlier this year, plunged over 40% after researchers discovered a critical flaw in its privacy system using Anthropic’s latest AI model. The final blow came on Friday with a stronger-than-expected U.S. jobs report, forcing investors to reassess the Fed’s next move. Earlier this year, markets anticipated rate cuts; now, they increasingly expect rate hikes if inflation remains elevated. U.S. Treasury yields surged, and the Nasdaq 100 posted its worst single-day performance since the April 2025 tariff-driven sell-off, ending its record-breaking rally—the primary driver of Wall Street’s optimism this year.
BTC and ETH may face their largest weekly decline since the FTX collapse, as the crypto market loses $390 billion.
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Summary
Bitcoin and Ethereum may experience their largest weekly decline since the FTX collapse, with BTC down 17.3% and ETH down 22%. The crypto market lost $390 billion and now sits just above $2 trillion. Traders are monitoring key support and resistance levels as value investing in crypto becomes increasingly critical. Over $7 billion in leveraged positions were liquidated, with longs accounting for $5.7 billion. The sell-off was triggered by MicroStrategy’s Bitcoin sale, shrinking ETF assets, concerns around AI, and a strong U.S. jobs report. Zcash fell over 40% after a privacy flaw was exposed by Anthropic’s AI model.
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