Bitcoin, Ether Post Worst Week Since FTX Collapse With $390 Billion Rout
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
bitcoincryptocurrency
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Digital asset markets are facing their most severe weekly decline since November 2022, with a $390 billion evaporation in global cryptocurrency market capitalization. The downturn, which accelerated throughout the week, has pushed Bitcoin toward a pivotal technical support level. As of 20:42 UTC today, Bitcoin trades at $60,638, reflecting a 24-hour decline of 0.96%. The selloff originated from large-scale institutional position unwinding, creating cascading liquidations across derivative markets.
The current capitulation represents the most significant weekly percentage drop for Bitcoin and Ether since the immediate aftermath of the FTX exchange collapse in November 2022. That event triggered a 25% single-week decline and catalyzed a prolonged crypto winter. The present macro backdrop features sustained pressure from elevated U.S. Treasury yields, with the 10-year note holding above 4.5%, diminishing the appeal of non-yielding speculative assets.
The immediate catalyst was a series of large Bitcoin transfers from a wallet linked to the defunct Mt. Gox exchange to a new address, spooking markets with the prospect of creditor distributions. This was compounded by net outflows from U.S. spot Bitcoin exchange-traded funds, reversing six consecutive weeks of institutional inflows. German authorities also moved approximately $600 million worth of seized Bitcoin to exchanges, signaling potential state-sponsored selling pressure.
Bitcoin’s price decline of over 10% for the week dragged its market capitalization down to $1.22 trillion. Trading volumes surged to $38.77 billion over the past 24 hours as panic selling took hold. The selloff was broad-based, with the CoinDesk 20 Index, a benchmark for major digital assets, falling 13% week-over-week.
Ether significantly underperformed Bitcoin, declining roughly 15% over the same period. This underperformance widened the BTC/ETH cross rate to its highest level since April 2021, indicating a flight to the relative safety of the market’s largest asset. Crypto equities mirrored the downturn, with shares of Coinbase Global Inc. and MicroStrategy Incorporated falling 18% and 25% respectively for the week.
| Metric | This Week's Performance | FTX Week (Nov 2022) |
|---|---|---|
| Bitcoin Weekly Decline | ~10.5% | ~25.0% |
| Total Market Cap Loss | ~$390B | ~$420B |
| Bitcoin Dominance | 51.2% | 38.9% |
The liquidation event disproportionately punished leveraged positions and altcoins. Over $1.8 billion in leveraged long futures positions were liquidated across exchanges in 48 hours, the highest cluster since August 2023. Mining stocks and Bitcoin proxy equities like MARA and RIOT saw declines exceeding 30%, reflecting heightened beta to the underlying asset.
Publicly-traded companies holding Bitcoin on their treasury balance sheets face mark-to-market losses on their digital asset portfolios. A sustained downturn below $60,000 could force some miners to sell Bitcoin holdings to cover operational costs, creating a self-reinforcing negative feedback loop. The counter-argument suggests this is a healthy deleveraging of an overheated market, flushing out excess speculation and creating a stronger foundation for the next leg up.
Trading flow data indicates a rotation into stablecoins, with USDT’s market capitalization climbing to a new all-time high despite the rout. This suggests capital is moving to the sidelines within the crypto ecosystem rather than exiting entirely. Options markets show a steep rise in implied volatility and aggressive put buying for July and September expiries.
Immediate focus shifts to the $60,000 support level for Bitcoin, a zone that provided strong resistance throughout March and early April. A sustained break below could trigger a test of the 200-day moving average, currently near $57,500. The next major macroeconomic catalyst is the U.S. Consumer Price Index report for May, scheduled for release on June 12.
The Federal Open Market Committee meeting on June 18 will provide critical guidance on the path of interest rates, a primary driver of capital allocation toward risk assets. Markets will also monitor Bitcoin ETF flow data daily for signs of institutional capitulation or accumulation. Ethereum ETF listing and launch approvals from the SEC, expected by late June or early July, could serve as a positive catalyst for the second-largest crypto asset.
The bear market triggered by the FTX collapse in November 2022 lasted approximately 16 months. Bitcoin did not reclaim its pre-FTX collapse price level of around $66,000 until March 2025. The total crypto market capitalization took nearly two years to recover fully, highlighting the potential for prolonged periods of consolidation after major deleveraging events.
The $60,000 level represents a crucial psychological and technical support zone. It was a key area of resistance throughout the first quarter of 2025 before Bitcoin finally broke above it. Historically, this price point has acted as a major support and resistance level, making it a critical line in the sand for trader sentiment and market structure.
U.S. spot Bitcoin ETFs experienced net outflows of approximately $450 million over the past three trading sessions, breaking a multi-week inflow streak. This shift from institutional inflows to outflows is a significant change in market dynamics and suggests that some institutional players are taking risk off the table or rebalancing portfolios amid the heightened volatility.
Digital asset markets are experiencing their most severe deleveraging event in over three years, testing key institutional support levels.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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