The crypto market has lost nearly $1 trillion in 22 days, and the sell-off has been abrupt. CoinMarketCap data shows total market capitalization fell 8.77% intraday to about $2.23 trillion. Over the past month, the market slid from $3.30 trillion to $2.17 trillion, a sharp reversal that pushed risk aversion higher across digital assets.
Major tokens were hit at the same time. Bitcoin dropped more than 9%, touched the $60,000 level, and later stabilized near $65,155.77 with a market value of roughly $1.3 trillion. Ether fell more than 12% to $1,891.41, Solana declined 14% to $79.43, and Dogecoin lost 11.36% to $0.09091. Derivatives pressure was even clearer: liquidations reached $1.82 billion, with about 90% of wiped-out positions coming from longs.
Macro pressure and policy headlines pushed traders into risk-off mode
The report links the drop to a cluster of macro and political concerns. Debate around Trump tariffs and signals from policy meetings appear to have shifted attention away from earlier optimism tied to crypto-friendly SEC leadership nominations. In this environment, traders focused less on sector-specific positives and more on broader market risk.
The article also points to fresh discussion around alleged crypto links in the Epstein files. Reports mentioned names such as Satoshi Nakamoto and Brock Pierce, even though no new charges were announced. That alone was enough to add another layer of caution. When reputational concerns enter the picture, institutions often pause first, and thinner liquidity can make price swings more severe.
Shutdown concerns and whale transfers added to the selling pressure
A partial US government shutdown in 2026 began after Congress missed the January 30 funding deadline. Historically, shutdown episodes tend to weaken investor confidence because they signal political deadlock. Risk-heavy assets usually react first, and crypto was already under strain.
Large transfers on-chain then added to the pressure. According to Lookonchain, wallets linked to Konstantin Lomashuk sent 12,458 stETH worth about $23.76 million and 2,566 ETH worth about $5.38 million to Wintermute. The report also said Aave founder Stani Kulechov sold 4,503 ETH, valued at about $8.36 million, near $1,857. Moves like these can trigger copy-selling and weigh on both spot and futures markets.
Fear index drops to 9 as traders stay defensive
Sentiment data shows how weak confidence has become. The fear and greed index now stands at 9, classified as extreme fear. It was 12 yesterday, 16 last week, and 42 last month. That sequence points to a market that has kept turning more defensive instead of finding quick relief.
On the outlook, Robert Kiyosaki said in an X post that gains are made during buying phases, not selling phases, and suggested patience until new bottoms appear. CoinGabbar analysts said recovery may take time because several macro events hit at once.