The cryptocurrency market faced a turbulent start to the week, shedding over 7% in value and triggering a staggering $208 billion in liquidations—erasing $80 billion from the sector’s total valuation. Despite widespread red across the board, select assets like Hedera (HBAR) and Bittensor (TAO) defied the trend. Meanwhile, regulatory progress for USDC in Dubai offered a glimmer of optimism amid growing macroeconomic concerns fueled by U.S. trade policy shifts.
Bitcoin Plummets to 40-Day Low Amid Tariff Fears and ETF Outflows
Bitcoin (BTC) dropped 4.7% on Monday, slipping below $91,000—a level not seen in over a month. The decline follows escalating market anxiety after former U.S. President Donald Trump announced plans to maintain tariffs on Mexican and Canadian imports starting in March. This move has sparked fears of renewed global trade tensions, contributing to risk-off sentiment across financial markets.
👉 Discover how geopolitical moves impact crypto markets and what’s next for BTC.
Technical indicators suggest further downside risk, with BTC struggling to reclaim key support levels. The sell-off intensified after the recent Bybit exchange hack, compounding investor unease. Since the incident, Bitcoin has lost approximately 7% of its value, briefly dipping to $93,000 during intraday trading.
Notably, Bitcoin ETFs recorded another $76 million outflow on Monday—marking five consecutive days of net withdrawals totaling $700 million. Such sustained outflows signal weakening short-term confidence among institutional investors.
Despite this bearish momentum, Michael Saylor’s Strategy (formerly MicroStrategy) made headlines by acquiring an additional 20,356 BTC worth $1.99 billion. This strategic accumulation underscores long-term institutional conviction in Bitcoin as a macro hedge, even amid volatility.
In the derivatives market, traders faced significant losses, with $243 million in BTC positions liquidated—accounting for over 20% of the day’s total $9.43 billion in crypto liquidations (source: Coinglass).
Solana Struggles with Dual Bearish Catalysts
Solana (SOL) continued its downward spiral, hitting a four-month low of $140—the lowest since October 2024. Over the past six weeks, SOL has declined by 51%, falling from its year-to-date high of $295 to just $142.
Two primary factors are driving Solana’s current downturn:
1. Pump.Fun’s New AMM Sparks DEX Competition
Pump.Fun, a popular meme coin launchpad on Solana, announced it would introduce its own automated market maker (AMM) to capture trading fees and redistribute value to investors. While beneficial for Pump.Fun users, this development threatens existing decentralized exchanges like Raydium, which rely heavily on traffic from newly minted meme coins.
As a result, Raydium’s native RAY token plunged 25% on the daily chart amid fears of reduced future revenue.
2. FTX’s Upcoming SOL Unlock Looms
An additional pressure point is the anticipated unlock of 11.2 million SOL—worth around $2 billion—from the defunct FTX exchange on March 1. With less than five days remaining, investors are preemptively reducing their exposure, fearing that the sudden influx could dilute supply and suppress prices.
This concern is amplified by ongoing market uncertainty following the Bybit hack, making traders especially sensitive to potential sell-side pressure.
Ethereum Drops 6% Despite Exchange Assurance
Ethereum (ETH) was not spared, falling 6% to a 20-day low near $2,470. The decline stems from Friday’s revelation that over 400,000 ETH—worth roughly $1 billion at current prices—were stolen in the Bybit breach.
Although Bybit confirmed all customer funds have been fully reimbursed, the psychological impact persists. Chain analysis revealed that hacker wallets began laundering stolen assets through Solana-based meme coins created on Pump.Fun, raising fears of imminent market dumping.
Crucially, Ethereum developers ruled out a network rollback to reverse the theft—a decision that disappointed some but affirmed the network’s commitment to immutability.
The stolen amount represents more than 3% of Ethereum’s circulating supply (~120 million ETH), explaining why many investors quickly reduced their ETH holdings to mitigate exposure.
HBAR and TAO Shine Amid Market Downturn
Amid broad-based declines, Hedera (HBAR) and Bittensor (TAO) stood out as the only two top-50 cryptocurrencies to post gains on Monday.
- Hedera (HBAR) rallied on news of a Nasdaq-listed ETF application, boosting investor confidence in its long-term regulatory trajectory.
- Bittensor (TAO) gained momentum amid strong global sentiment toward artificial intelligence (AI), reinforcing its position as a leading AI-driven blockchain protocol.
These performances highlight how niche narratives—particularly those tied to real-world applications like AI and enterprise-grade distributed ledger technology—can outperform during risk-off environments.
Litecoin Whale Activity Signals Institutional Accumulation
Litecoin (LTC) fell 7% on Monday, dropping from $126 to a session low of $112—extending losses since the Bybit hack to 14%.
However, chain data paints a bullish picture beneath the surface. According to IntoTheBlock’s “Large Transactions” metric—which tracks transfers exceeding $100,000—whale activity remains robust, with daily large transaction volume holding above $1.05 billion and nearing last month’s peak of $1.1 billion.
This sustained demand suggests institutional investors are accumulating LTC during the dip, likely fueled by rising expectations for a spot LTC ETF. Analysts estimate the approval likelihood at nearly 90%, creating a powerful catalyst for future price appreciation once broader market sentiment stabilizes.
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Key Developments Shaping the Crypto Landscape
PancakeSwap Launches on Monad Testnet
PancakeSwap has gone live on the Monad testnet, bringing ultra-low fees (as low as 0.01%) and high-speed transactions to DeFi users. With Monad capable of processing thousands of transactions per second, this integration promises enhanced capital efficiency and reduced congestion—even during peak activity.
Testnet users can now explore PancakeSwap v2 and v3 features using test tokens ahead of mainnet launch. Note: No rewards or fee burns are active at this stage.
USDC and EURC Gain Regulatory Approval in Dubai
In a landmark decision, Dubai Financial Services Authority (DFSA) officially recognized Circle’s USDC and EURC as approved stablecoins under its regulatory framework.
This allows businesses within the Dubai International Financial Centre (DIFC) to integrate these digital assets into payment systems and financial operations. The move strengthens the UAE’s position as a forward-thinking hub for digital asset innovation and reflects its commitment to building a structured, transparent crypto ecosystem.
SEC Drops Investigation into Robinhood Crypto
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto without taking enforcement action. The decision, communicated via a letter dated February 21, 2025, ends a probe that began with a Wells Notice in May 2024.
Robinhood welcomed the outcome, with Chief Legal Officer Dan Gallagher stating the investigation “should never have been initiated.” He emphasized that Robinhood Crypto does not facilitate securities trading and has always operated in compliance with federal laws.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop below $91,000?
A: Bitcoin's decline was driven by macroeconomic concerns over new U.S. tariffs, continued ETF outflows ($76M on Monday), and lingering fallout from the Bybit hack.
Q: Is Solana recovering from its downward trend?
A: Not yet. SOL faces dual headwinds: competition from Pump.Fun’s new AMM and an upcoming $2B FTX-related token unlock on March 1.
Q: Can Ethereum rebound after losing 6%?
A: A recovery depends on restored confidence post-hack. With developers rejecting a rollback and whales possibly accumulating, stabilization may occur if selling pressure eases.
Q: Why are HBAR and TAO rising when others fall?
A: HBAR benefits from ETF speculation, while TAO aligns with strong AI market trends—both offering narrative-driven resilience in bearish conditions.
Q: Are Litecoin whales really buying during the crash?
A: Yes. Chain data shows large LTC transactions remain above $1.05B daily, indicating smart money is accumulating ahead of potential ETF approval.
Q: What does USDC’s Dubai approval mean for crypto adoption?
A: It sets a regulatory precedent in the Middle East, legitimizing stablecoins for enterprise use and reinforcing Dubai as a global crypto hub.
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