Crypto Market Cap Crashes, a Sign of Entering a Bear Market?

Bittime - The crypto cap market fell to $2.44 trillion (around IDR 39,940 trillion) on Tuesday. This decline is the lowest level since seen in early November 2024. 

This decline triggered massive liquidations of more than $937 million (around IDR 15.37 trillion) in the last 24 hours. Are these the first signs of a bear market? Keep following this article to find out.

Crypto Market Cap Drops to Lowest Level Since November

Source: FX Street

Kripto market cap fell from $2.72 trillion (around IDR 44,600 trillion) on Monday to $2.44 trillion (around IDR 39,940 trillion) on Tuesday. This fall occurred amidst a downward trend in the prices of Bitcoin and other major altcoins.

A massive wave of liquidations occurred, with total liquidations reaching $936.51 million (around Rp. 15.36 trillion) in the last 24 hours. Data from Coinglass shows that the largest liquidation order occurred on Binance on the BTCUSDT pair, with a value reaching $5.26 million (around IDR 86.46 billion).

Read also: Apple Shares Drop Dramatically: Causes and Impact for Investors

Factors that Triggered the Crypto Market Cap Crash

There are several main factors causing the fall in the crypto market cap. The following is the explanation:

1. Impact of Bitcoin Movement by Mt. Gox

One of the main factors that worsened market conditions was the movement of large amounts of Bitcoin by the defunct crypto exchange, Mt. Gox. 

Data from Lookonchain reveals that Mt. Gox moved 11,833 BTC worth $932 million (around IDR 15.29 trillion) on Tuesday, after previously moving 12,000 BTC worth more than $1 billion (around IDR 16.4 trillion) last week.

In this latest transfer, 11,501.58 BTC ($905.06 million or around Rp. 14.84 trillion) was sent to the new wallet, while 332 BTC ($26.13 million or around Rp. 428.53 billion) was transferred to the warm wallet.

This large transfer of Bitcoin has given rise to speculation among investors. Typically, the movement of large amounts of assets to a new wallet or exchange indicates plans to sell or distribute those assets, which can increase selling pressure in the market.

2. Massive Liquidation

With the price of Bitcoin and major altcoins falling, many traders using leverage experienced forced liquidation. 

This further exacerbated the price decline and created a domino effect across the crypto ecosystem. The more positions are liquidated, the greater the selling pressure that occurs.

Read also: XRP News: XRP Price Analysis Towards $27 – Upside Potential and Driving Factors

3. Deteriorating Market Sentiment

Apart from technical factors, investor sentiment also plays a role in market movements. Uncertainty regarding regulations, global monetary policy, and concerns about a potential economic recession have added to the fear in the crypto market. 

When negative sentiment dominates, many investors choose to withdraw their funds and secure profits before the market falls further.

Is This the Beginning of a Bear Market?

With the crypto market cap plummeting and selling pressure increasing, a big question arises: is this the start of a bear market? Even though bearish signs are starting to emerge, many analysts still assess that the long-term trend of the crypto market remains bullish. 

Factors such as institutional adoption, developments in blockchain technology, and increasing utility of crypto remain positive drivers in the long term.

However, in the short term, high volatility will still be a challenge for investors. If the selling pressure continues and the market cap continues to decline, it is not impossible that the market will actually enter a bear market phase.

Read also: Bitcoin Will Rebound If These 3 Things Happen!

FAQ

1. What is crypto market cap?

Market cap or market capitalization is the total value of all crypto assets circulating on the market. Market cap is calculated by multiplying the asset price by the number of coins in circulation.

2. Why is the crypto market cap falling?

A decrease in market cap can be caused by various factors, such as large sell-offs, liquidation of leveraged positions, or macroeconomic uncertainty.

3. Does a decrease in market cap mean a bear market has started?

Not always. A decrease in market cap could be an early signal of a bear market, but it could also just be a temporary correction in a larger bullish trend.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

coinmarketcap, Coinmarketcap.com, accessed March 11, 2025.

FX Street, The crypto market cap dips to $2.44 trillion while Mt. Gox moves 11,833 BTC worth $932 million, accessed March 11, 2025.

Author: Y