The Binance research team explained the causes and effects of the February crash in the crypto market.

Binance Research has released its cryptocurrency market analysis report for February 2025. The report highlights that despite a significant drop in overall market value, Bitcoin has increased its market dominance, while stablecoins and real-world assets (RWAs) continue to grow. It also provides a detailed examination of global economic developments and key events influencing market movements.

The cryptocurrency market experienced a sharp decline of 20.2% in February, reducing its total market value from $3.6 trillion to $2.8 trillion. This downturn was driven by negative market sentiment, a record $1.5 billion security breach at Bybit, and reduced activity in meme coins. Despite this, Bitcoin maintained its status as a safe haven, increasing its market share to 59.6%. Meanwhile, stablecoins and RWAs saw significant growth, further supported by regulatory clarity in the U.S. and attractive yields in the private credit market.