"Not a panic, but a sanitary cleansing." What is pushing crypto prices down and how to save money

The crypto market is experiencing its fourth month of correction. From October 10, 2025, to February 4, 2026 – bitcoin has become cheaper more than 40% – this is the deepest drop since 2022. In less than a week, investors lost almost $0.5 trillion. Since January 29, 2026, the total market capitalization has decreased by $467.6 billion.The sharp downward movement has affected the entire digital finance market, forcing investors to talk about a new phase of instability. Some have already started withdrawing funds for fear of losing everything, while others are buying new assets. But what should we expect in the medium term?Is this just a temporary correction or the beginning of a longer decline? Are there signs of deeper risks? And most importantly, what should retail investors who are already in positions and seeing significant losses do? Read more in the article LIGA.netWhat happened to the crypto market? At the beginning of 2025, the crypto market was in a wait-and-see mode – investors were pricing in an optimistic scenario amid the change of power in the country U.S. administrations, loyal to digital assets. However, reality turned out to be tougher.The Fed's policy turned out to be less liberal than expected, geopolitical tensions in the world increased, and global liquidity generally decreased.Read alsoTrump's appointment of the Fed chairman caused gold and silver prices to plummet. Copper also couldn't hold its own."The reason for the current decline is the general situation in the financial markets: geopolitics, war, high uncertainty, and the lack of positive signals for the global economy," believes Ruslan Lynnyk, managing partner of the Majinx Capital fund.Under such conditions, markets do not correct themselves, but continue to move downwards, he stresses.Kirill Khomyakov, Binance's regional head for Central and Eastern Europe, Central Asia, and Africa, shares a similar view on the situation.In his opinion, the main factors that caused the market correction were large-scale deleveraging (the process of reducing or closing leveraged positions – ed.), liquidation of long positions, and significant institutional outflows from crypto funds (mainly in the US).Read also"I see growth areas where everything seems stable," an interview with the CEO of the WhiteBIT crypto exchangeThe key moment of the collapse was February 1. It was the so-called "Black Sunday" – a period when traditional financial markets were closed, and liquidity on crypto exchanges remained minimal, which amplified the scale and speed of the decline.The real reason for the fall should be sought in market mechanics, according to a cryptocurrency investor and founder of the university. Learn to Earn Global Mykhailo Patsan. According to him, by the time of the collapse, a critical volume of speculative positions had accumulated – about $53 billion in open interest, which the market had to "clear.""This is not a panic, but a 'sanitary cleansing'," emphasizes Patsan.Read alsoIs crypto winter near? Why are cryptocurrencies getting cheaper and how long will the market be down?The choice of the moment – "Black Sunday" – in his opinion, indicates the targeted pressure of market makers on the stop-loss (an automatic order to a broker or exchange to sell an asset when its price falls to a predetermined level) of retail investors.A harsh correction or a new one? downward trend"Currently, we are talking about a correction within the market cycle, not a systemic crisis," believes Kirill Khomyakov, Binance's regional head.Phases like the current one are historically accompanied by a market cleansing of excessive leverage and the formation of a base before the next stage of growth. According to Khomyakov, the absence of panic in the options market and a sharp increase in demand for hedging also does not resemble a deep crisis."We are seeing a classic, albeit harsh, correction within an extended liquidity cycle, not a structural collapse of the industry," Patsan agrees.Read also"The biggest money is made by those who buy when everyone is selling out of fear." An interview with a crypto investor.The difference is significant, because during a real systemic crisis, protocols stop working, exchanges go bankrupt, and key network indicators drop sharply. Instead, we are currently only talking about a revaluation of prices, and not about problems within the industry itself."This is an attempt to drive 'tourists' who were expecting easy money out of the market," Patsan suggests.However, not all crypto experts believe that this is just a temporary market correction. Ruslan Lynnyk, managing partner of Majinx Capital fund, says that a full-fledged downward trend has begun."The correction happened earlier – up to certain levels. Now we are not dealing with a 'big crisis,' but rather with a combination of cyclicality and systemic uncertainty," says Lynnyk.Read alsoHow blockchain affects cryptocurrency stability: explained with examples of Ethereum, Solana, and PolygonEven if the traditional four-year cycles no longer work as they used to, the market is still entering a phase of caution and expectation. Along with other financial markets, cryptocurrencies are also in a downturn, he notes.What to do now and how to protect your moneyDespite the unstable situation in the crypto market, investors and analysts advise against making decisions under the influence of pressure and emotions. This is according to Mykhailo Patsan. "Locking in losses at extreme fear levels (index 20-25) and in the strong historical support zone of $78,000-$82,000 is financial suicide, unless you urgently need cash to survive," Patsan notes.Read alsoMoney should work for you. Where can you invest in 2026?The crypto market is susceptible to psychological pressure. Investors are made to believe that the decline is endless, often just one step away from a possible reversal. In such a situation, the best strategy is not to try to recoup losses by increasing leverage, which can lead to liquidations, but to switch to "cold storage" mode.What to pay attention to in the near future:Funding rates on derivatives;Stablecoin capitalization;ETF flows;Key Bitcoin levels."On average, for a long-term investor, the window for building positions can last up to 200 days," says Lynnyk, advising against tying oneself to a single entry point and actively monitoring market developments.Investors with a long-term horizon should focus on risk management and stick to their chosen strategy, without reacting to short-term volatility, advises Kyrylo Khomyakov, Binance's regional head.Read alsoThe threat of stablecoins: myth or reality? The fate of crypto in the world of traditional global currencies.It is also worth closely monitoring institutional flows, especially in the US market, key technical levels for Bitcoin – around $76,000 as a support level and $74,000–$74,500 as a critical zone, as well as the situation in the options market and demand for hedging instruments.