Crypto market tumbles as bitcoin drops 6%, ether plunges 11% to lows

The cryptocurrency market tumbled on with Bitcoin and Ether hitting multi-month lows, as a broader cross-market sell-off and concerns over last week’s $1.5 billion Bybit hack continued to weigh on investor sentiment.

Bitcoin and Ether slide to multi-month lows

Bitcoin, the world’s largest cryptocurrency by market value, dropped as much as 6%, falling to $88,245, its lowest level since November and the first time it has slipped below $90,000 since mid-January.

Ether, the second-largest cryptocurrency, saw an even sharper decline, plunging as much as 11% to $2,333, marking its lowest price since October.

Altcoins struggle as weak sentiment and scandals mount

Alongside Bitcoin and Ether, major altcoins such as Solana and Dogecoin also faced heavy losses. Solana dropped 15%, while Dogecoin declined 13%, reflecting a broader risk-off sentiment in the digital asset market.

“Crypto is just weak and has been for eight weeks,” said Jeff Dorman, Chief Investment Officer at Arca. “Equities, fixed income, and gold have shrugged off negative data, but only crypto keeps falling. Poor sentiment, memecoin scandals, and lack of capital for new token launches are driving this weakness.”

Since mid-December, most altcoins have lost between 30% and 80% of their value, according to Arca.

Solana faces added pressure from token unlock

Solana has seen particularly steep losses, losing around $50 billion in market value over the past month. The decline was partially triggered by a controversy involving Argentina’s President Javier Milei and a memecoin called Libra, which collapsed in value.

Adding to the selling pressure, $1.72 billion worth of SOL is set to be unlocked on March 1, according to research firm Messari.

“With continued token unlocks and increased supply, many investors are selling,” said Edward Chin, co-founder of Parataxis Capital. “Most traders are already fully invested in altcoins, and any new capital is flowing into Bitcoin. This explains Bitcoin’s relative strength and continued market dominance. Without a strong narrative in the altcoin sector, we could see further declines.”

Bybit fack fallout still weighs on market

Ether remains under pressure even as Bybit pledged to fully replenish the estimated $1.5 billion lost to hackers. The Dubai-based exchange reportedly borrowed Ether and appears to have purchased additional tokens to cover the loss, according to a repost on X from Bybit CEO Ben Zhou.

Crypto stocks decline alongside market sell-off

The broader cryptocurrency downturn also hit crypto-related stocks.

• Coinbase Global Inc. closed lower for the sixth consecutive day.
• MicroStrategy fell 5.7%, turning negative for the year.
• Bitcoin miner MARA Holdings Inc. declined 5.3% on Monday, after dropping 13% last week.

Market outlook remains uncertain

With ongoing market volatility, token unlocks, and weak investor sentiment, analysts suggest that altcoins may continue to bleed until a new catalyst emerges.