Crypto Market Loses $390 Billion as Bitcoin and Ethereum Post Biggest Weekly Drops Since FTX Collapse

The cryptocurrency market suffered one of its most difficult weeks in years as a broad selloff erased nearly $390 billion from the digital asset sector. Bitcoin (BTC) plunged 17.3% over the week, while Ethereum (ETH) dropped 22%, marking their steepest weekly declines since November 2022, when the collapse of FTX triggered a major crypto market crash.

Although prices showed signs of stabilization over the weekend, Bitcoin remained just above $60,000 and Ethereum traded near $1,550. The broader crypto market capitalization fell to slightly above $2 trillion, a sharp decline from the nearly $4.2 trillion peak recorded in October.

The downturn also devastated leveraged traders. According to CoinGlass data, approximately $7 billion in crypto positions were liquidated during the week, making it one of the largest liquidation events of 2026. Long positions accounted for roughly $5.7 billion of the losses, highlighting the scale of bullish bets caught in the selloff.

Several factors combined to fuel the market decline. Early in the week, Strategy (MSTR), the largest corporate holder of Bitcoin, disclosed its first BTC sale in almost four years. While the transaction involved only 32 BTC worth about $2.5 million, it sparked concerns that the company could sell more Bitcoin in the future to meet financial obligations.

Meanwhile, spot Bitcoin ETFs continued to experience outflows. Analysts suggested that some investors are reallocating capital from cryptocurrencies to artificial intelligence (AI) opportunities. With AI-related stocks reaching record highs and anticipated IPOs from major technology firms generating excitement, some market participants are reconsidering their crypto exposure.

Additional pressure emerged after researchers reportedly used Anthropic’s latest AI model to identify a critical vulnerability in Zcash’s privacy infrastructure. The news sent ZEC down more than 40%, further weakening sentiment across the digital asset market.

The final catalyst arrived with a stronger-than-expected U.S. jobs report. The data increased concerns that the Federal Reserve could maintain higher interest rates or even consider future rate hikes if inflation remains elevated. Rising Treasury yields and a sharp decline in technology stocks added to the risk-off environment.

While crypto prices steadied during the weekend, investors remain focused on key macroeconomic risks, including interest rate expectations, bond yields, and growing competition from the booming AI sector. Whether this correction represents a market bottom or signals further downside remains uncertain.