Crypto Market Loses $730B — Is the Boom-Bust Era Over?
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THE $730 BILLION EXODUS: Is This the End of the Crypto Cycle? According to market analyst Paul Bennet, the crypto market’s $730 billion wipeout in just 100 days marks far more than a routine correction. What initially appeared to be a healthy pullback from October’s record highs has accelerated into what Bennet describes as a broad institutional retreat, fundamentally shifting liquidity, sentiment, and capital flows across the entire digital asset market, from Bitcoin to smaller-cap tokens. A Bear Market Blueprint Emerges Bitcoin Dominance Trap Bitcoin is showing clear signs of strain. Its market capitalization has fallen by roughly $350 billion, dropping from about $1.69 trillion to $1.34 trillion. While public narratives emphasize unwavering hodling by major holders, on-chain data tells a more cautious story: risk-off positioning and slowing accumulation among large wallets. With Bitcoin trading at $68,060 per CoinCodex data, key metrics point to growing restraint rather than renewed conviction. Source: CoinCodex The pullback has also created a dominance paradox. Bitcoin’s share of the total crypto market has edged higher, but largely because capital is exiting altcoins faster, not because of aggressive inflows into BTC. In other words, its dominance is being driven more by capitulation than confidence. Ironically, as volatility resurfaces, traditional financial institutions that once dismissed Bitcoin are now racing to secure exposure, underscoring its enduring strategic relevance despite short-term weakness. Altcoin Massacre The downturn extends well beyond Bitcoin. Over the past 100 days, the top 20 altcoins (excluding stablecoins) have fallen about 15%, and the damage deepens further down the market cap ladder. Mid- and small-cap tokens have plunged 20% or more, as capital rotates into perceived safe havens. Once the drivers of speculative upside, smaller tokens are now the epicenter of forced selling, with thinning liquidity and widening bid–ask spreads amplifying volatility. Yet amid the drawdown,…
Filed under: News - @ February 22, 2026 2:22 pm