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The crypto market has taken a massive hit in the past 24 hours, with total market capitalization dropping below the crucial $3 trillion mark, currently sitting at $2.98 trillion. This sharp decline of over 7% signals a potential further slide in crypto prices. Market sentiment is turning increasingly bearish as Bitcoin inches closer to the critical psychological level of $90,000. If Bitcoin fails to hold above this mark and drops lower, it could trigger an even more severe crash, dragging altcoins further into the red. Total crypto market cap in USD - TradingView The entire market is experiencing a broad sell-off. Bitcoin, the leading indicator of crypto sentiment, is struggling, which affects the entire ecosystem. Historically, altcoins tend to crash harder and recover slower than Bitcoin , leading to increased fear among investors. The Federal Reserve continues its quantitative tightening (QT) policies, signaling that interest rate cuts are unlikely in the near future. Higher interest rates make risk assets like cryptocurrencies less attractive, leading to more sell-offs. Additionally, uncertainty remains about whether Donald Trump’s administration will implement the "Strategic Bitcoin Reserve" plan, which could provide a massive boost to Bitcoin but has yet to materialize. The correlation between the crypto market and traditional financial markets remains strong. Last week, the S&P 500 experienced its worst day in two months, falling by nearly 2%. A weak stock market often translates to a weak crypto market, as institutional investors adjust their risk exposure. A recent security breach at Bybit, a major crypto exchange, has heightened fear among investors. Many traders are now hesitant to enter the market, reducing overall buying pressure and leaving prices vulnerable to further declines. The market-wide decline has hit some cryptocurrencies particularly hard. Here are the biggest losers in the past 24 hours: As the crypto market remains volatile, traders are closely watching Bitcoin’s $90,000 level. If further downside is seen, expect more pain ahead for altcoins and the entire market.

Glassnode: $BTC short-term holder SOPR struggles at breakeven According to Glassnode on X, Bitcoin’s short-term holder (STH) SOPR (7-day SMA) is testing the 1.0 breakeven level again. Historically, breaking above 1.0 confirms a bullish shift, while failure to do so leads to renewed selling pressure. The STH-SOPR Multiple, which tracks short-term profitability trends, is currently in the red zone, indicating increased realized losses.

Anyway, I'll take one of those 'Red Monday, green week' specials

The Bitcoin (BTC) Sell-Side Risk Ratio has plummeted to historically low values, signaling a potential local bottom and an accumulation phase in the market. This key metric, which measures the incentive for long-term holders to sell, suggests a low sell-side risk environment, potentially paving the way for future price appreciation. #Bitcoin $BTC Sell-Side Risk Ratio has dropped to low values, often indicating local bottoms, accumulation phases, and a low sell-side risk environment! pic.twitter.com/0QxIh4RQYe — Ali (@ali_charts) February 23, 2025 According to Crypto Analyst Ali Martinez, The Sell-Side Risk Ratio is a valuable on-chain metric used to gauge market sentiment by analyzing the behavior of long-term Bitcoin holders. It measures the relative profitability of selling BTC against the historical average. When the ratio is low, it indicates reduced selling pressure, as holders have less incentive to realize profits. Conversely, high values suggest increased selling pressure due to attractive profit-taking opportunities. According to the latest data from Glassnode, the Sell-Side Risk Ratio has dropped to one of its lowest points in recent history, as depicted in the accompanying chart. Historically, such low values have correlated with local bottoms and accumulation phases, where long-term investors are less likely to sell. This pattern has often preceded significant upward price movements. Historical Context, Low Risk, Accumulation Outlook The chart illustrates three previous instances where the Sell-Side Risk Ratio reached similarly low levels, marked by black arrows: November 2023: The ratio touched the red line, signaling a local bottom. This was followed by a strong rally as accumulation increased.September 2024: A similar dip occurred, leading to another price surge as long-term holders refrained from selling.February 2025: The current drop mirrors these historical patterns, suggesting a potential bottoming out and a favorable accumulation period. The current low Sell-Side Risk Ratio reflects a low sell-side risk environment, indicating that long-term holders are not under pressure to sell at current prices. This trend aligns with the notion of an accumulation phase, where investors accumulate BTC at lower prices, potentially setting the stage for a future bullish cycle. If historical patterns hold, Bitcoin could be entering a prolonged accumulation phase, with reduced selling pressure leading to price stability and eventual appreciation. This phase typically precedes a bull run as market confidence and buying momentum increase. The Bitcoin Sell-Side Risk Ratio’s current low values provide a critical insight into market sentiment and potential future price movements. By indicating reduced selling pressure and increased accumulation, this metric suggests that Bitcoin may be nearing a local bottom, making it a key indicator to watch in the coming weeks.

As per Titan Of Crypto’s data , Bitcoin dominance is weakening, making way for an altcoin season. The altcoins are gaining strength as suggested by bearish divergence on the Bitcoin Dominance (BTC.D). Even though BTC.D reached a high of 62%, it fell sharply and plunged to around 54%. This means Bitcoin’s market share is weakening, which could lead to altcoins reversing. As Bitcoin’s dominance increased, the Relative Strength Index (RSI) was unable to reach new heights. This bearish divergence supports the change in market sentiment by pointing to a waning trend. Additionally, the BTC.D chart’s successive red candles attest to heightened selling pressure. Additionally, long upper wicks near recent highs signal rejection at higher levels. This rejection suggests sellers are gaining control. The RSI’s break below key levels further supports a bearish outlook for Bitcoin dominance. Hence, capital may flow into altcoins as investors seek opportunities beyond Bitcoin. As Bitcoin dominance weakens, altcoins could experience increased demand. Historically, a drop in BTC.D coincides with stronger altcoin performance. Lower Bitcoin dominance means more market participants are allocating funds to alternative cryptocurrencies. Furthermore, a bearish market configuration on the BTC.D indicates further downside potential. In this case, where selling pressure persists, the downtrend in Bitcoin dominance could theoretically continue Its decline. It may seem likely that in this situation, altcoin traction would increase alongside heightened market interaction. The current downward RSI movement aligns with declining Bitcoin dominance. If Bitcoin dominance remains bearish, altcoins could gain further traction. The percentage scale on the BTC.D highlights Bitcoin dominance falling from 62% to 54%. If the downward trend continues, dominance could drop further. This scenario would provide altcoins with more market share and liquidity. Moreover, technical indicators support a prolonged bearish trend for BTC.D. The presence of multiple red candles reinforces the ongoing selling pressure. DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.