Crypto Market Sheds $390B in Worst Weekly Rout Since FTX Collapse

Amid a period of intense volatility in digital markets, the cryptocurrency sector lost nearly $390 billion in total market capitalization over a single week. Bitcoin fell 17.3% and Ethereum dropped 22%, marking their steepest weekly declines since the FTX collapse in November 2022. This broad-based selloff highlights a significant shift in investor sentiment and a massive deleveraging event across the digital asset ecosystem.

The downturn coincides with broader macroeconomic pressures as recent hawkish signals from Federal Reserve officials have dampened risk appetite globally. According to recent analyst notes from JPMorgan, forced liquidations of leveraged positions exacerbated the downward spiral. Per market data, the scale of this weekly value destruction significantly outpaces the volatility seen in traditional equity indices during the same period, reflecting the heightened sensitivity of crypto assets to liquidity shifts.

Traders should closely monitor Bitcoin's key support levels following this weekly close. Looking ahead, upcoming catalysts including US inflation data and central bank commentary—such as the Fed Waller speech noted on May 31, 2026—will be crucial for determining if the market can stabilize. The focus remains on whether the current levels can hold to prevent further technical damage to the long-term bullish thesis.