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🗞️ What the hell is happening? 🤯

Crypto market crash? Bitcoin, Solana, and memecoins just lost $325 billion—with $100B vanishing in an hour. The Bybit hack, Citadel's crypto move, and stock market volatility all triggered a major liquidity drain. Is this a healthy pullback or the start of something worse? Get the full breakdown on why crypto liquidity is drying up and what it means for Bitcoin and altcoins.

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the Coinscript
February 25, 2025

Hello, this is Coinscript.

In today’s episode:

  • ✍️ What the hell is happening? 🤯

TOP STORY

What the hell is happening? 🤯

Did Someone Pull the Liquidity Plug?

Crypto just took a $325 BILLION hit over the weekend.

Then, at 5:00 PM ET yesterday—out of nowhere—another $100 billion vanished in an HOUR. 

source: Kobeissiletter

No breaking news. No FUD campaigns. Just poof. Gone.

So, what the hell is going on?

The Domino Effect: Memecoins, Solana & Bitcoin

It all started with Solana.

Just last week, Solana was riding high on a memecoin mania wave—but when that frenzy cooled off, SOL took a tumble.

At first, Bitcoin shrugged and kept moving.

But then, as the S&P 500 started dipping on Friday, Bitcoin decided, Welp, might as well join the party.

And join it did.

Bitcoin just lost its grip on $90K support and is now looking weaker than my New Year’s resolutions in February.

Oh, and guess what?

This all happened just hours after Citadel, the $65 billion Wall Street behemoth, announced they want to become a liquidity provider for crypto.

The market heard that and immediately said, “Cool, time to sell.”

The Bybit Hack Didn’t Help

Meanwhile, Bybit just set the record for biggest financial heist in history.

No, not just in crypto—in ALL of finance.

Hackers made off with more money than the infamous Central Bank of Iraq heist in 2003.

This even doubled the previous worst crypto hack (PolyNetwork’s $611M disaster in 2021).

If you needed a reminder that hacks destroy confidence… well, here you go.

A Healthy Pullback or the Start of Something Worse?

Now, before you go panic-selling your bags, let’s take a deep breath.

Yes, the market looks bad.

Yes, Bitcoin is down.

Yes, Ethereum is struggling.

But we’ve seen plenty of -10% dips in this bull run already, and every time, BTC bounced back stronger than ever.

The reality? There’s not just one reason for this selloff. It’s a mix of:

  • A memecoin hangover.

  • Bitcoin reacting to stock market volatility.

  • A historic hack killing market confidence.

  • A general pullback in risk appetite.

Put all that together, and you get a classic liquidity drain.

The Bottom Line

Crypto NEEDS liquidity to thrive.

Right now, the market is a little dry, but this isn’t necessarily a death sentence. The bull market isn’t over just because we hit a bump in the road.

What are your thoughts on that? Hit “reply” and let us know! :)

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.