Crypto market capitalization is down 8% on the day, plunging below $3.1 trillion on Feb. 25 following a wipeout of almost $200 billion in 24 hours.

This is the lowest markets have been since mid-November, obliterating almost all gains since Donald Trump’s election victory.

Total cap is now teetering on longer-term support levels, and a fall below $3 trillion will see these levels broken and a potential end to the bull market.

$1B in Liquidations

Coinglass reported that more than 314,000 traders have been liquidated over the past 24 hours to the tune of almost a billion dollars. Over 90% of the liquidations were in long positions and the largest single liquidation order happened on BitMEX with $10 million worth of Bitcoin.

Bitcoin dumped more than 5% in a matter of hours, falling from $96,000 to $91,000, its lowest level since mid-January. At the time of writing it appeared to have found support there and reclaimed $91,500 during the Tuesday morning Asian trading session.

Ethereum lost around 10%, falling back below $2,500. However, it is showing little signs of a recovery bounce.

The Altcoins have been obliterated with double-digit losses for Solana (SOL), which is now down more than 50% in a little over a month following the meme coin bubble bursting. Chainlink (LINK), Avalanche (Avax), Sui (SUI), and Hyperliquid (HYPE) were also in double-digit losses this morning.

Analysts are generally unfazed, having seen this market behavior many times before.

Prepare for both scenarios, well in advance.

If youre caught by this move, feeling unsure about what to do, it means you didnt have a plan.

Low $90ks is the first leg of my plan, and the air-pocket below $86k is the second.

Higher eventually, have a plan for that too.

Fear and Greed

The Bitcoin Fear Greed Index has plunged to its lowest level since September, hitting “extreme fear” at 25 on Tuesday, following neutral readings for the past week or so.

On the upside, there have been several similar market meltdowns in recent months, including a 7.5% crash on Dec. 9, a 10% meltdown on Dec. 19, a 7.5% slump on Jan. 7, and an 8% dump on Feb. 2, which markets never recovered from.

Macro investor Raoul Pal pointed out that these massive pullbacks have happened in previous cycles and are perfectly normal.

You guys all need to learn patience

This was 2017. Very similar macro structure:

5 x 28%+ pullbacks in BTC

Most lasted 2 to 3 months before a new high

Alts saw 65% corrections.

All were noise.

Go do something else more constructive than stare at the screen. pic.twitter.com/jGyiOgKlYE