February 2025 was a real test for the crypto market, turning into massive losses for investors and a collapse in the capitalization of key assets, including Bitcoin and Ethereum. During this month, the market sank by tens of percent and some cryptocurrencies have fallen in price by more than half.
Global decline in the value of crypto assets
Bitcoin has experienced one of the most significant drops in its history. According to Coinglass, as of February 28, its value has fallen by 21%, falling to $80.9 thousand. This February was one of the worst in the history of BTC. The strongest collapse occurred in June 2022, when the price fell by more than 37%. If we consider the decline from the January maximum of $110 thousand, then Bitcoin has lost about 27%.
Ethereum was also not left out: in February, its price fell by 36%, making it the fourth worst month in the history of the cryptocurrency.
In March 2018, ETH collapsed by 54%, and until 2025, the only time February was unprofitable for the asset was in the same 2018, when losses amounted to 24%. Since the beginning of 2024, Ethereum has lost about 50%, reaching $2.1 thousand. The total capitalization of the cryptocurrency market has decreased by 25%, falling to $2.67 trillion.
According to Coinmarketcap, among the 100 largest coins, 80% showed a drop, and for some the decline reached 67%.
Cryptocurrencies that suffered the biggest losses
Among the outsiders were three memecoins from the Solana ecosystem – Bonk (-50%), Dogwifhat (-57%) and TRUMP (-59%). The Virtuals Protocol token also showed a significant drop (-50%).
However, the most unprofitable asset was the token of the decentralized exchange Raydium, which fell by 67% in a month. Solana also suffered from the general decline and updated its five-month minimum. At the same time, the least affected of the top 10 cryptocurrencies were Tron (TRX), which lost only 6%, and BNB Chain, which fell by 14%.
Other major assets, including XRP, DOGE, SOL and ADA, fell by 34-42%.
Decentralized finance under attack
DeFi platforms have also felt the pressure of the market. Since the beginning of February, the total volume of user funds in DeFi has decreased by 23%, reaching $92.5 billion, and compared to the December maximum, the decline was 51%. Ethereum remains the leader among blockchains in the field of decentralized finance, accounting for 53% of user deposits. Solana is in second place (7.5%), and Bitcoin is in third place (5.8%).
ETFs based on cryptocurrencies also recorded losses
Exchange-traded funds (ETFs) investing in cryptocurrencies also suffered significant losses. In February, the outflow of capital from Bitcoin funds amounted to over $3.6 billion. In the second half of the month, a record daily outflow of $1.1 billion was recorded. Despite the negative dynamics in the Bitcoin ETF segment, Ethereum-based funds showed a slight positive balance: in February they raised about $100 million. The total volume of assets under their management reached $8.3 billion.
Further market prospects
February 2025 went down in history as one of the most difficult months for the cryptocurrency market. However, despite the massive losses, many experts consider the current decline temporary and expect the upward trend to return in the near future.
According to CryptoQuant analysts, the current situation may lead to market consolidation in the range of $75-100 thousand per BTC. Such a scenario was already observed at the beginning of 2024, and further growth is possible with the appearance of positive news.
Binance CEO Richard Teng noted that crypto assets have become an integral part of the global financial systеm and have repeatedly recovered from crises. The founder of Strategy, the largest corporate holder of Bitcoin, jokingly stated that “anything is worth selling, but not BTC.”