Crypto investors suffered one of their toughest weeks in years as a wave of selling wiped out hundreds of billions of dollars from digital asset markets. Bitcoin fell 17.3% and ether dropped 22%, putting both on track for their largest weekly declines since November 2022 when FTX collapsed. The total market cap shed roughly $390 billion, now hovering just above $2 trillion, less than half of the peak reached in October. Derivatives markets saw about $7 billion in liquidations, mostly long positions. The selloff was driven by multiple factors: Strategy (MSTR) sold a small amount of BTC for the first time in nearly four years, raising concerns about further sales; Bitcoin ETFs continued to see outflows amid rotation toward AI investments; Zcash tumbled 40% after AI discovered a critical vulnerability; and a stronger-than-expected U.S. jobs report sparked rate-hike fears, sending bond yields higher and dragging down stocks. Whether this marks a capitulation bottom or continued downtrend depends on macroeconomic factors like bond yields, rate-hike fears, and competition from AI investments.

Key facts

• Bitcoin fell 17.3% and ether 22%, worst week since FTX collapse.
• Total crypto market cap lost $390 billion, now at $2 trillion.
• Roughly $7 billion in leveraged positions liquidated, mostly longs.
• Strategy sold 32 BTC for first time in 4 years, rattling investors.
• Strong US jobs data sparked rate-hike fears, pressuring risk assets.

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