The total market cap of the cryptocurrency market dropped by 2%, losing $40 billion in the last 24 hours. Major cryptocurrencies like Bitcoin and Ethereum are struggling to gain momentum.
Bitcoin and Ethereum ETF Outflows
One of the key reasons behind the market decline is continuous outflows from Bitcoin and Ethereum ETFs. In the past two weeks, U.S. spot Bitcoin ETFs saw total net outflows of $1.14 billion, marking the largest withdrawal since their launch. Last week alone, Bitcoin ETFs recorded $571 million in outflows, driven by concerns over trade tariffs, inflation, and potential changes in monetary policy. Fidelity led these outflows, followed by Grayscale and Bitwise, which further increased market uncertainty. Ethereum ETFs have also seen significant withdrawals, totaling $85.3 million over the past two weeks, primarily from Grayscale. This selling pressure further impacted Ethereum’s price.
Major Hacks Add Pressure
Another key factor in the market downturn is a series of major crypto hacks. The Bybit hack resulted in a loss of $1.4 billion worth of Ethereum, causing a major sell-off in the market. Although Bybit’s CEO, Ben Zhou, has confirmed the recovery of $742 million in stolen funds, investor confidence remains shaken. In addition, another hack targeted the neobank Infini, leading to a $49.5 million theft in USDC.
February Outlook
Historically, February has been a strong month for Bitcoin, but this time, Bitcoin is already down 6.41% for the month. Analysts believe that BTC needs to close above $102,500 to turn February into a green month. If it fails to reach this level, it could mark only the third negative February in its history.
Bitcoin and Ethereum prices remain under pressure, and their future movements depend on many factors, including macroeconomic uncertainty and competition from other platforms.
