Cryptocurrency markets suffered a severe hit on Monday, shedding 7% of their value in a single session. Liquidations totaled a staggering $208 billion, wiping $80 billion off the total crypto market capitalization.

Bitcoin (BTC), the market leader, fell by 4.7%, reaching a 40-day low of $91,000. The downturn was exacerbated by continued outflows from Bitcoin exchange-traded funds (ETFs), which saw an additional $76 million in withdrawals. Over the past five days, ETFs tracking BTC have bled a total of $700 million, intensifying the bearish outlook. In the derivatives market, traders faced over $243 million in BTC liquidations, accounting for 20% of the total $943 million in liquidations across the market.

Adding to Bitcoin's woes, U.S. President Donald Trump’s recent push to impose tariffs on Mexico and Canada has introduced additional uncertainty into the financial landscape. These geopolitical tensions have not only impacted traditional markets but have also spread bearish sentiment across the crypto space.

While most of the crypto market faced heavy selling pressure, two assets defied the trend—Hedera (HBAR) and Bittensor (TAO), which posted intraday gains. HBAR rallied following Nasdaq’s recent exchange-traded fund (ETF) filing, while TAO saw an uptick driven by growing interest in AI-related projects.

Solana (SOL), one of the biggest altcoin losers, dropped to $140—its lowest level in four months. The decline was primarily driven by two factors. First, the decentralized exchange (DEX) Raydium suffered a 25% plunge in its RAY token price after the Pump.Fun platform announced plans to launch its own automated market maker (AMM). This development raised concerns about liquidity fragmentation within Solana’s DeFi ecosystem.

Secondly, the ongoing liquidation of assets linked to the now-defunct FTX exchange continues to put pressure on SOL. The FTX estate is preparing to unlock and redistribute 11.2 million SOL tokens, worth approximately $2 billion, to creditors on March 1. Fearing a flood of new supply in the market, investors have been rapidly offloading their Solana holdings.

Ethereum (ETH) also faced a steep decline, dropping 6% to a new 20-day low of $2,470. The decline followed reports that funds stolen in last week’s Bybit exploit were being funneled through Solana-based memecoins. Despite Bybit’s assurance that it had covered all customer losses, Ethereum traders remained cautious. Notably, the stolen 400,000 ETH represents more than 3% of Ethereum’s total circulating supply, fueling concerns about potential market dumping.

Amid the chaos, Litecoin (LTC) stood out as an asset showing resilience among institutional investors. Despite falling 7% on Monday, whale activity in LTC remained strong, with transactions exceeding $10.5 billion. Analysts believe optimism surrounding a potential Litecoin ETF approval is helping maintain investor interest, setting the stage for a future breakout once market conditions stabilize.

Beyond the price action, there were some notable developments in the crypto sector. PancakeSwap announced its integration with the Monad testnet, promising lower trading fees and enhanced efficiency for decentralized finance (DeFi) users. Meanwhile, Dubai’s financial regulator approved Circle’s USDC and EURC as the first legally recognized stablecoins in the region, further cementing the UAE’s position as a crypto-friendly jurisdiction.

In regulatory news, the U.S. Securities and Exchange Commission (SEC) officially dropped its case against Robinhood Crypto, concluding its investigation without taking any enforcement action. Robinhood executives welcomed the decision, stating that the investigation was unnecessary from the start.

Despite the market downturn, industry developments continue to shape the long-term trajectory of cryptocurrencies. While traders brace for further volatility, institutional players appear to be taking advantage of the dip, accumulating assets in anticipation of future bullish momentum.