Bitcoin, ether eye worst weekly rout since FTX collapse as cryptos shed $390 billion
Bitcoin and ether posted their steepest weekly drops since FTX, as crypto markets lost about $390 billion and nearly $7 billion in leveraged bets were wiped out.
Intelligence analysis by GPT-5.4 Mini
A cluster of bearish catalysts hit crypto at once: Strategy's first bitcoin sale in years, persistent ETF outflows, AI-driven capital rotation, and hotter-than-expected U.S. jobs data. The result was one of the largest weekly drawdowns since the FTX collapse.
Crypto had a very bad week, like a sandcastle getting hit by waves from several sides at once. Bitcoin and ether fell hard, and many risky bets got wiped out when investors rushed for the exit.
Analysis
What happened
Bitcoin fell 17.3% this week and ether dropped 22%, putting both on pace for their worst weekly losses since November 2022, when the FTX collapse triggered a market-wide panic. The broader crypto market lost about $390 billion in value, with total capitalization falling to a little over $2 trillion.
Why the selloff deepened
The decline was not driven by one event. Strategy, the largest corporate holder of bitcoin, disclosed its first BTC sale in nearly four years, even though the sale was tiny at 32 BTC. Still, the move rattled investors who had treated the company as a steady source of demand. At the same time, bitcoin ETFs continued to see outflows, and some market watchers said capital may be rotating toward AI-linked investments instead of crypto.
Derivatives traders were hit hard as well. CoinGlass data showed about $7 billion in leveraged positions were liquidated during the week, including roughly $5.7 billion in long positions.
Macro pressure
Friday's stronger-than-expected U.S. jobs report added another layer of stress. Traders had been looking for rate cuts earlier in the year, but now some are reconsidering whether the Federal Reserve could even hike if inflation stays stubborn. Rising Treasury yields and a weak day for the Nasdaq 100 added to the risk-off tone.
The article says the weekend brought some stabilization, but it is still unclear whether the week marked capitulation or just another leg down.
Key points
- Bitcoin and ether are on track for their worst weekly losses since the FTX collapse in November 2022.
- The crypto market lost about $390 billion in value during the week, according to TradingView data.
- Roughly $7 billion in leveraged crypto positions were liquidated, with long bets taking most of the damage.
- Strategy's first bitcoin sale in nearly four years unsettled investors, even though the sale was only 32 BTC.
- ETF outflows, AI-related capital rotation, and stronger U.S. jobs data all added pressure.
If the selling has already flushed out weak positions, the market could stabilize after such a sharp drop. The article also notes prices paused on Saturday, which suggests the panic may be easing if macro fears stop worsening.
If ETF outflows continue and investors keep moving money toward AI and other assets, crypto could stay under pressure. Higher bond yields, possible Fed tightening, and more forced liquidations could extend the downtrend.
