Bitcoin and ether posted their worst weekly performance since FTX's November 2022 collapse, shedding roughly $390 billion in combined market value across the crypto sector. The rout accelerated following Strategic Wealth Partners' $8 billion bitcoin sale, which triggered broader liquidations and forced selling across major assets.
The timing proved toxic. The week that started with the institutional bitcoin offload spiraled into one of crypto's sharpest declines this cycle, reminiscent of the panic-driven selloffs that accompanied the exchange's catastrophic implosion. Ether fell alongside bitcoin, signaling systemic pressure rather than isolated weakness in any single asset.
The $390 billion erasure reflects renewed uncertainty about macro conditions and crypto's correlation with equity markets. Liquidation cascades on leveraged positions accelerated the downturn, as traders and hedge funds faced margin calls. The scale of losses suggests institutional exposure remains concentrated enough that large forced sales create ripple effects through the entire ecosystem.
Strategic's bitcoin unload appears to have broken a critical psychological support level, creating space for stop-losses and algorithmic selling to compound the damage. The timing coincided with broader market volatility, amplifying the effect beyond what the sale alone would have triggered.
This marks crypto's worst week since FTX's November 2022 collapse, when contagion fears gripped the sector following revelations about misused customer funds. That period taught markets to move quickly when confidence erodes. This week's action suggests similar dynamics remain embedded in crypto psychology. Large holders know the pattern. So do traders positioned for volatility.
The magnitude of losses signals that despite three years of market healing, leverage, concentration risk, and herd behavior still drive crypto price action. Institutions and retail traders alike face renewed pressure to reassess portfolio positioning. Recovery depends on whether support levels hold or whether further capitulation follows.