Cryptocurrency crashes show no signs of stopping. Over the past week, the entire market has experienced significant volatility, with Bitcoin recording a decline of over 20%. Ethereum has suffered nearly a 30% loss, and the total market capitalization has shrunk from $2.8 trillion to $2.24 trillion, approximately a 20% decrease.

Along with the crypto crash, the derivatives market has also plunged into chaos. During the weekend alone, $2.75 billion in long positions were forcibly liquidated, and an additional $1.8 billion disappeared on Thursday. Many traders are leaning toward short positions, and in major assets like Solana and XRP, funding rates have dropped close to -30%, indicating an excessive short bias is spreading.

Interestingly, despite this market turmoil, institutional investors continue to act. Michael Saylor added 8.55 million BTC for $75.3 million, increasing his Bitcoin holdings to 713,502 BTC. Some large exchanges are also purchasing Bitcoin to bolster their reserves, viewing the price decline as a buying opportunity. This behavior suggests that long-term confidence in the crypto market has not yet been lost.

The background of the crash also involves weakness in traditional stock markets. The S&P 500 fell by 2.14%, and the Nasdaq dropped by 4.63%. In an environment where risk assets are broadly sold off, cryptocurrencies are also swept along by the wave.

Various theories are circulating about the scale and speed of the sell-off, including possibilities of government-related Bitcoin sales, issues with exchanges’ liquidity, and systemic leverage unwinding. There are also concerns that derivatives products are distorting price discovery.

However, even as the market declines, development activity continues. Over 75,000 ETH that had been unclaimed since the DAO incident are scheduled to be utilized in the Ethereum Security Fund. Many projects like Lighter, MegaETH, and Polymarket are advancing new initiatives. Protocols such as Lido, Hyperliquid, and Ethena have announced upgrades and incentive programs, indicating that despite short-term volatility, the long-term growth of the ecosystem persists.

Venture funding is also showing resilience, with companies like TRM Labs and Anchorage Digital completing large funding rounds. While the short-term crash is painful, the overall structural growth of the market remains ongoing.