The cryptocurrency market has experienced a dramatic downturn, with over $325 billion in market capitalization lost since last Friday. The cause of this rapid decline is attributed to a confluence of factors, including the slump of Solana, liquidity concerns, and the largest crypto theft in history – the Bybit hack. 22% drop for Solana has left investors reeling as its value dwindles. This, coupled with the $1.5 billion loss from the Bybit exchange attack, triggered widespread uncertainty and sell-off pressure across the market. The price of Bitcoin also experienced a sharp decline on Monday, exceeding crucial support levels and contributing to further market volatility. Analysts are uncertain about the exact trigger for this sudden crash. Some highlight the potential impact of Citadel’s move to become a liquidity provider in the crypto space, while others point to technical factors like Solana’s weakening momentum after a period of “memecoin hype.” While some speculate that news of Citadel Securities’ investment plans might have triggered a sell-off, the market seems to be reacting more broadly to overall fear and uncertainty. The Bybit hack, which is considered to be the largest in crypto history, further eroded investor confidence, especially for Ethereum, which also suffered steep declines. This event has highlighted the vulnerability of cryptocurrency exchanges to security breaches. Liquidity concerns have been a growing factor in recent months. The market’s sudden drop underscores the critical role that liquidity plays in the cryptocurrency ecosystem. However, experts believe this pullback doesn’t necessarily point towards a long-term bear market. Previous crypto crashes have historically seen short-term volatility followed by healthy corrections, with Bitcoin displaying similar patterns throughout its cycle. This article is for informational purposes only and should not be considered investment advice.