The volatility of the cryptos market is not unusual, but the recent lower trends challenge analysts. Almost a quarter of the 200 largest cryptos have affected their lowest level in one year, a phenomenon which, according to some experts, could announce an imminent capitulation of the market. This situation, marked by cascade liquidations and panic movements, causes questions about the direction that the market will take in the coming weeks.
A pressure market: signs of a possible capitulation
The recent fall in cryptos accelerated after February 7, when a wave of liquidation caused a general prices withdrawal. Jamie Coutts, analyst at Real Vision, revealed that 24 % of the 200 largest cryptos have reached a lower over 365 days, a critical threshold which recalls the correction of August 2024, when this figure had peaks at 28 %. “In the lower market, readings beyond 30 % are common before a capitulation. The question is: Are we in a bull or lowering market? “, questioning The expert in a publication on the social network X (formerly Twitter) on February 19, 2025.
This phenomenon is accompanied by a drop in global capitalization of the Crypto market, fell to 3.13 trillions of dollars. Juan Pellicer, analyst in Intotheblock, evokes a “cleaning of over -indebted positions”, in reference to the liquidations observed on cryptos like Solana, particularly exposed to excessive leverage. This market purge could, according to him, mark a low point before a possible rebound, provided that macroeconomic signals align favorably.
Temporary correction or paradigm change?
If the fall in prices has rekindled the fears of a capitulation, some observers put into perspective the situation and evoke a simple retracement within an always bull market. Pellicer believes that trade tensions between the United States and China, as well as increasing assessments linked to artificial intelligence, strongly influence the feeling of investors. He suggests that these elements could maintain a long -term positive dynamic, despite current turbulence.
Another factor blurs the perspectives: the development of the same. Edwin Mata, CEO of Brickken, alert on the effect of liquidity fragmentation generated by these ultra speculative tokens, often promoted by influential figures in the sector. “The rise in power of the same has diverted part of the capital of established projects, which makes the market recovery scheme less predictable,” he explains. This influx of speculation exacerbates volatility and complicates the identification of a reliable market floor.
If the current trend seems to mark a turning point for the cryptos market, it is still too early to talk about final capitulation. The evolution of capital flows, the behavior of institutional investors and macroeconomic data will be decisive in the coming weeks. This question remains: is this correction an opportunity to purchase, or the enhancement sign of an extended downward phase?
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