Cryptocurrency Market Plunges 20% in February... Could It Be the Worst Month of 2025?

# Cryptocurrency Market Sees Sharp Decline in Early 2025, Dropping 20.2% New York - Correspondent Park Jae-hyung reported on February 11 (local time) that the cryptocurrency market experienced a 20.2% drop in February 2025, marking the most challenging period of the year so far, according to Crypto-Economy. # Major Hack and Economic Uncertainty Drive Market Down A recent research report from Binance highlights that the market plunge resulted from a combination of a significant hacking incident and macroeconomic uncertainties. The total market capitalization of cryptocurrencies shrank from $3.6 trillion to $2.8 trillion, severely denting investor sentiment. # Bybit Hack Worsens Market Conditions One of the primary catalysts for this downturn was the largest hack in history at the cryptocurrency exchange Bybit. The hacking attack resulted in a loss of $1.46 billion worth of cryptocurrencies, suspected to be the work of North Korea's Lazarus Group. This event dealt a heavy blow to the market, intensifying selling pressures. Additionally, the LIBRA token incident further eroded investor confidence. The memecoin market was especially hard hit, with trading volumes and investor interest plummeting. # $3 Billion Liquidated Over Three Days Major cryptocurrencies also suffered significant setbacks. Bitcoin (BTC) plunged 16%, marking its steepest monthly decline since the FTX collapse in 2022. Ethereum (ETH) experienced a 20% drop, heavily impacted by the loss of 500,000 ETH in the Bybit hack. The market's volatility led to the forced liquidation of positions worth approximately $3 billion between February 24 and 26. # DeFi and NFT Markets Not Spared Decentralized Finance (DeFi) and the NFT market were not immune to the downturn. DeFi’s total value locked (TVL) fell by 14.6%, while the NFT market saw its most severe decline since April 2021. Macroeconomic uncertainties and inflationary concerns, coupled with a cautious stance by investors towards speculative assets, accelerated the downturn. However, some platforms managed to expand their market share. OpenSea, for instance, enhanced its competitiveness through new developments and token launches, solidifying its market position. # Focus on Security and Investor Confidence The recent market decline underscored the importance of security and investor confidence in the cryptocurrency industry. Experts point to enhanced security measures, stabilized investor sentiment, and improved macroeconomic conditions as crucial factors for market recovery. February 2025 is likely to be recorded as one of the worst months in cryptocurrency history. However, the market's demonstrated ability to adapt to changes and challenges suggests that the industry's response and innovation will shape its future direction.