The cryptocurrency market faced another turbulent day on Monday, with a sweeping 7% decline triggering over $208 billion in liquidations and erasing $80 billion from the sector’s total valuation. Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all suffered sharp losses, while geopolitical tensions and regulatory developments added further pressure. Amid the chaos, select assets like Hedera (HBAR) and Bittensor (TAO) defied the trend, showcasing resilience in a bearish landscape.
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Bitcoin Market Update: Tariffs and Technical Weakness Drive Sell-Off
Bitcoin dropped 4.7% on Monday, hitting a 40-day low near $91,000. This marks a cumulative 7% decline since the Bybit security incident, with intraday lows reaching $93,000. The sell-off was exacerbated by broader macroeconomic concerns, particularly former President Donald Trump’s renewed threat to impose tariffs on Mexico and Canada starting in March. The announcement rattled global financial markets, reinforcing risk-off sentiment that spilled into digital assets.
Technical indicators point to continued downside pressure. Bitcoin’s price is now trading below key moving averages, and momentum oscillators suggest weakening buyer conviction. The market structure shows increased liquidation clusters below $90,000, raising concerns about a potential breakdown if support fails.
ETF Outflows Add to Bearish Pressure
Bitcoin exchange-traded funds (ETFs) saw another $76 million in outflows on Monday, extending a five-day streak that has drained $700 million from ETF coffers. Persistent outflows signal waning institutional appetite amid uncertainty, potentially limiting any near-term recovery.
Despite this, long-term bullish signals remain. Michael Saylor, CEO of Strategy (formerly MicroStrategy), announced the acquisition of 20,356 additional BTC for $1.99 billion—underscoring confidence in Bitcoin as a macro hedge. Such strategic accumulation by corporate treasuries may provide a floor during market corrections.
Altcoin Market Update: HBAR and TAO Rise While ETH and SOL Struggle
While most major altcoins declined, Hedera (HBAR) and Bittensor (TAO) stood out as the only top 50 cryptocurrencies to gain value on Monday. Their performance highlights shifting investor focus toward niche fundamentals amid broad market weakness.
Solana (SOL) Plunges to 4-Month Lows
Solana fell to $140—the lowest level since October 2024—marking a 51% decline over six consecutive weeks of losses. From its year-to-date high of $295, SOL now trades at just $142, pressured by two major catalysts.
First, Pump.Fun, a popular meme coin launchpad on Solana, announced plans to launch its own automated market maker (AMM). This move threatens existing decentralized exchanges like Raydium, which rely heavily on transaction fees from meme coin trades. In response, Raydium’s RAY token plunged 25% in 24 hours.
Second, the upcoming FTX estate unlock looms large. On March 1, approximately 11.2 million SOL—worth around $2 billion—will be released to creditors. With less than five days remaining, traders are reducing exposure ahead of potential supply overhang, especially amid lingering uncertainty from the Bybit hack.
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Ethereum (ETH) Drops 6% Despite Bybit Reassurance
Ethereum slid to a 20-day low near $2,470 after losing 6% on Monday. The decline follows the theft of over 400,000 ETH—worth roughly $1 billion—from Bybit’s hot wallet. Although the exchange confirmed all user funds were reimbursed and operations normalized, market confidence remains fragile.
Chain analysis revealed that hacker-linked wallets began laundering stolen ETH through Solana-based meme coins on Pump.Fun. This raised fears of imminent sell pressure as criminals attempt to offload funds. With stolen ETH representing over 3% of Ethereum’s circulating supply (~120 million), investors reacted swiftly by reducing positions.
Notably, Ethereum developers rejected any proposal to roll back the blockchain to reverse the theft—a decision that preserved network integrity but did little to calm short-term nerves.
Hedera and Bittensor Defy Market Downturn
Amid widespread red ink, Hedera (HBAR) and Bittensor (TAO) posted gains—highlighting divergent narratives within the crypto ecosystem.
Hedera’s rally was fueled by news of a Nasdaq ETF application—a development that could bring institutional-grade exposure to the enterprise-focused distributed ledger platform. Meanwhile, Bittensor gained traction amid growing optimism in artificial intelligence (AI) markets. As one of the few blockchains natively supporting decentralized machine learning models, TAO benefits from increasing interest in AI-crypto convergence.
These performances suggest that while macro forces dominate headlines, project-specific catalysts can still drive outperformance.
Litecoin Whale Activity Signals Accumulation Amid Downturn
Litecoin (LTC) fell 7% to a session low of $112—extending losses since the Bybit hack to 14%. However, on-chain data reveals a different story beneath the surface.
According to IntoTheBlock’s “Large Transactions” metric—which tracks transfers exceeding $100,000—whale activity in the Litecoin network remains robust. The total value of large LTC transactions has held above $10.5 billion, nearing last month’s peak of $11 billion.
This sustained demand indicates that institutional investors are accumulating LTC during the downturn. Analysts attribute this to rising expectations around a potential Litecoin ETF approval, with estimates suggesting a 90% chance of regulatory greenlight. If realized, such approval could catalyze a significant price breakout once broader market sentiment improves.
Key Cryptocurrency News Updates
PancakeSwap Launches on Monad Testnet
PancakeSwap has gone live on the Monad testnet, bringing ultra-low fees and high-speed trading to decentralized finance (DeFi). With transaction costs as low as 0.01%, users can access both PancakeSwap v2 and v3 with enhanced capital efficiency via concentrated liquidity or fixed-fee models.
Monad’s architecture supports thousands of transactions per second with near-instant finality, addressing scalability issues common during high-volatility periods. While current testnet activities use mock tokens and offer no rewards, this phase paves the way for mainnet deployment.
USDC and EURC Officially Recognized in Dubai
In a landmark move, the Dubai Financial Services Authority (DFSA) has approved USDC and EURC as the first regulated stablecoins under its framework. This allows firms within the Dubai International Financial Centre (DIFC) to integrate these digital assets into financial applications, including payments and treasury management.
The decision reinforces the UAE’s commitment to building a transparent and structured digital asset ecosystem. It also strengthens Dubai’s position as a global crypto hub by providing legal clarity for stablecoin usage.
SEC Drops Charges Against Robinhood Crypto
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Robinhood Crypto without taking enforcement action. The decision, communicated in a letter dated February 21, 2025, ends an inquiry that began with a Wells notice in May 2024.
Robinhood welcomed the outcome, with Chief Legal Officer Dan Gallagher stating the probe “should never have been initiated.” He emphasized that Robinhood Crypto does not offer securities and operates in compliance with federal regulations.
The closure marks a significant win for the platform and may ease regulatory concerns surrounding crypto trading services in the U.S.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop below $91,000?
A: Bitcoin’s decline was driven by macroeconomic fears tied to Trump’s proposed tariffs on Canada and Mexico, combined with technical weakness and sustained ETF outflows totaling $700 million over five days.
Q: Is Solana recovering from its downward trend?
A: Not yet. Solana has fallen 51% over six weeks due to reduced DeFi revenue from Pump.Fun’s new AMM and anticipation of a large FTX-related token unlock worth $2 billion.
Q: Can Ethereum rebound after the Bybit hack?
A: A rebound is possible if hacker-linked wallets stop moving funds. However, with no blockchain rollback planned and over 400,000 ETH stolen (~3% of supply), investor caution persists.
Q: Why are HBAR and TAO rising when most cryptos are falling?
A: HBAR is gaining momentum from ETF speculation similar to Bitcoin, while TAO benefits from strong AI market sentiment and its role in decentralized machine learning networks.
Q: Are whales really buying Litecoin?
A: Yes. On-chain data shows large LTC transactions consistently above $10.5 billion, suggesting institutional accumulation—likely fueled by rising optimism around a potential ETF approval.
Q: What does USDC’s approval in Dubai mean for crypto adoption?
A: It sets a regulatory precedent for stablecoin use in financial services within DIFC, enhancing legitimacy and encouraging enterprise integration across payments and digital asset management.
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