Key Insights
- The market sentiment has more than doubled in the last 5 days so why is crypto down today?
- Crypto market falls 2.7% as Bitcoin risks its longest losing streak since 2018.
- Investment funds see $173M in outflows, with Bitcoin and Ethereum leading exits.
- Long-term holders aggressively accumulate BTC, hinting at a potential market bottom.
If you have been keeping tabs on the crypto market, chances are that the question “Why is the crypto market down today?” may have popped into your mind. Analysts have been waiting for crypto to bounce back significantly, especially after showing bullish signs during the weekend.
The question of why crypto is down today is pertinent considering the market sentiment. The fear-and-greed index bottomed out at 5 on 12 February. It has since bounced to 12. A clear sign of recovery.
The crypto market was down by over 2.7% today despite improving sentiment. The CoinMarketCap 20 Index, which tracks the top 20 coins by market cap, fell 2.87% in the same period.
The crypto market is in the longest consecutive Bitcoin downtrend in seven years. Bitcoin was on track to achieve its longest losing streak in the last 7 years.
In February alone, BTC is already down 13%, and if it closes the month in the red, the asset will have been in a 5-month loss streak. The last time this happened was in 2018, which constituted one of the worst bear markets in crypto history with a 6-month losing streak.
This preference for the downside has investors thinking that the market is currently in crypto winter, even though some of the data did not align with bear cycle metrics.
Why is Crypto Down Today May Be Linked to Investment Fund Outflows
Investment funds previously led the charge in liquidity flows into crypto, especially in Bitcoin and Ethereum. However, the same investment funds have been aggressively pulling out their liquidity from crypto.
Data from CoinShares shows digital asset investment products just logged a fourth straight week of outflows, with $173 million exiting the market.
Bitcoin was the most affected cryptocurrency, with $133 million in liquidity outflows. Most of the investors selling their coins were from the United States. However, European and Canadian institutional holders also saw significant outflows.
Ethereum came in second with $85 million outflows, which was a reflection of its slacking fundamentals. On the flip side, XRP and Solana registered some inflows. Overall, total withdrawals reached $3.74 billion in the past month.
According to CoinShares, this pattern appears near market bottoms, signaling that selling pressure was approaching exhaustion.
Bitcoin Accumulators Are Stacking Hard
CoinShares’ interpretation of the flows is further backed by data from CryptoQuant. According to Darkfost, an expert analyst on CryptoQuant, demand coming from accumulator addresses continues to rise sharply.
These addresses represent a specific class of long-term holders who hold a large supply of BTC.
According to CryptoQuant data, the monthly accumulation by these addresses is now averaging around 373,000 BTC, which is a massive figure. The recent decline in Bitcoin appeared to be creating opportunities for these investors or entities, who continue to accumulate aggressively.
Darkfost further noted that there were roughly 10,000 accumulator addresses in September 2025. That figure has since surged by That represents a 3,830% increase in roughly 5 months.
Based on these findings, it was clear that the crypto market is currently in an awkward scenario where demand was present but it was also canceled out by institutional outflows.
While these findings demonstrated why the crypto market was down today, it also revealed key points about the market. Demand might be there, but it was from a relatively small cohort of buyers.
In other words, the demand observed during the weekend was not strong enough to fully sway the market into a confidently bullish mood.
