Bitcoin sees largest weekly drop in market cap since inception

We’ve seen larger percent drops in a week before, but in terms of market capitalization, this is the largest. I found this out through a quick analysis of the charts and went back in history to estimate the weeks with big losses, and the market capitalization during those drops. But I personally think we will see some support here and bounce above 80k USD.

Several factors have contributed to this significant downturn:

1. Macroeconomic Concerns: The global economic landscape is currently fraught with uncertainties. U.S. President Donald Trump’s announcement of impending tariffs—25% on imports from Mexico and Canada, and an additional 10% on Chinese goods—has heightened fears of trade wars and potential inflation. This protectionist stance has led investors to retreat from riskier assets, including cryptocurrencies.

2. Major Security Breach: The cryptocurrency community was shaken by a massive security breach at the Bybit exchange, resulting in the theft of approximately $1.5 billion worth of digital assets. This event has severely undermined investor confidence in the security of crypto platforms.

3. Market Dynamics and Investor Behavior: The recent sell-off has been exacerbated by significant outflows from Bitcoin-backed exchange-traded funds (ETFs). Over the past week, these ETFs have seen outflows exceeding $1 billion, indicating a shift in investor sentiment and a move away from crypto assets.