• Nearly $2 trillion has left the crypto market since October.
• Total market capitalization sits about 46% below its peak.
• ETF inflows and tokenized asset growth suggest core narratives remain intact.
Crypto Price News this week centers on a sharp drawdown that has erased nearly $2 trillion in value in under five months.
Prices began sliding after the October 10 flash crash. Since then, the total crypto market cap has fallen roughly 46% from its all time high.
However, underlying structural trends show continued institutional engagement.
Liquidations Triggered the October Shock
The downturn accelerated on October 10 following a cascade of liquidations. According to CoinGlass data published at the time, more than $16 billion in long positions were wiped out within hours.
In retrospect, markets reacted after President Donald Trump moved forward with tariff hikes on China when negotiations stalled. That decision fueled a broad risk off move across assets.
As a result, forced selling amplified losses in digital assets. Bitcoin and major altcoins followed the same downward trajectory.
Headlines declaring “Bitcoin is dead” resurfaced again. The website Bitcoin Deaths recorded nine such headlines in February alone.
Crypto ETF Inflows Remain Structurally Strong
Despite the sell off, exchange traded products tied to crypto continue to attract capital.
Data from CoinShares shows global crypto ETP assets under management stood at $132 billion at the end of last week. That figure is down from an October 2025 peak near $260 billion.
Still, investors added $47.2 billion to crypto ETPs last year. In 2026, net outflows total about $1.3 billion so far.
Importantly, products now offer exposure not only to Bitcoin and Ethereum but also to assets like Solana, Litecoin, and Chainlink.
Therefore, institutional access remains broader than in previous cycles.
Tokenized Assets Expand Despite Price Weakness
Meanwhile, tokenized real world assets continue to grow.
Data from RWA.xyz shows the sector’s combined market value rose from $21.2 billion at year end to $24.9 billion at the time of writing. That represents a 17% increase in less than two months.
Tokenized gold products, including Tether Gold and PAX Gold, account for roughly 19% of the RWA market. In addition, BlackRock USD Institutional Digital Liquidity Fund provides on chain exposure to U.S. Treasury assets.
These developments suggest blockchain adoption extends beyond speculative trading.
Bitcoin vs Gold
The “digital gold” thesis weakened significantly last year.
In 2025, gold gained 65% amid trade tensions and macro uncertainty. By contrast, Bitcoin ended the year down 6%.
That 71% performance gap challenged the hedge narrative. The divergence continued into 2026, with gold up 16% while Bitcoin has dropped about 23%.
Wealth managers often view gold as a centuries old store of value. Bitcoin, launched just 17 years ago, still competes for that perception.
Correlation Trends Show Divergence
Bitcoin also decoupled from equities.
While the Nasdaq 100 advanced roughly 20% last year, Bitcoin declined. In 2026, the index has slipped 2%, whereas Bitcoin has fallen more than 20%.
Such divergence supports the view that crypto trades as a distinct risk asset rather than a simple tech proxy.
However, during extreme macro shocks, correlations can temporarily spike. That pattern has appeared in past cycles.
Market Impact
The 46% drop in total crypto market capitalization reflects significant wealth destruction. Futures positioning has thinned, and sentiment indicators show elevated fear.
Yet, capital formation through ETFs and tokenization continues. That contrast defines the current environment: price weakness alongside structural development.
Crypto Price News today presents a market under pressure but not necessarily broken.
Liquidations and macro shocks drove the recent crash. Nevertheless, ETF inflows, expanding tokenized assets, and evolving correlation patterns suggest core adoption trends remain active.
Whether this downturn marks a long consolidation or a deeper shift remains uncertain. For now, hard data shows participation persists even as prices retrace.
