Final Week Update: Crypto is Bleeding In Red As $325 Billion Market Cap Vanishes

February was rough. However, things look especially grim after today. The Kobeissi Letter reports released to the public on Tuesday claim that there has been a total of $325 billion crypto wipeout since Friday. Furthermore, a Bloomberg report suggests that Citadel Securities, a crypto firm holding $65 billion in assets, is looking to explore BTC and crypto liquidity providers. Amidst all of these things, FTX CEO Sam Bankman-Fried expressed “sympathy for government employees.”. 

Crypto Bloodbath 

February 25th, Tuesday, was a rude awakening for the market as the Kobeissi Letter released a report. According to the report, around $325 billion of market capitalization has been erased from the crypto landscape since Friday. In fact, the community lost close to $100 million in just one hour without any prior warning.  

The report explains that the market recorded a $150 billion wipeout in just 24 hours. Therefore, this is one of the biggest wipeouts in the recent history. The report clearly said that “Selling has broadened with just about all crypto assets falling sharply.” This could be a rude awakening for many crypto firms in action today.  

Every coin has suffered greatly in this wipeout. However, the meme coin market has seen one of the sharpest dips. Solana has declined by 22% since Friday, with no sign of recovering. Therefore, the whole of the market is currently bleeding red. 

Amid the scathing crypto crash, Sam Bankman-Fried, ex-CEO of defunded crypto exchange FTX, claims that he has “a lot of sympathy for government employees.” The statement came at a time when Musk and his regulatory body, DOGE, are looking to conduct a mass layoff.

1) I have a lot of sympathy for gov’t employees: I, too, have not checked my email for the past few (hundred) days

And I can confirm that being unemployed is a lot less relaxing than it looks

— SBF (@SBF_FTX) February 25, 2025

Therefore, this can destabilize the political part of the crypto community and leave people stranded. Hence, the final week of February does not seem promising at the moment.