Cryptocurrency Market Sees Largest Weekly Decline Since FTX Collapse

The cryptocurrency market has been experiencing a significant downturn this week, with both Bitcoin and Ethereum posting their largest weekly declines since the FTX collapse in November 2022.

The market capitalization dropped by approximately $390 billion over the week, with total market capitalization falling back above $2 trillion. This contraction is attributed to multiple negative factors that accumulated in a short period.

Beyond the price decline, the derivatives market has also seen significant deleveraging. According to CoinGlass data, approximately $7 billion in leveraged positions across the digital asset market were liquidated this week, with about $5.7 billion of those being long positions.