The cryptocurrency market has experienced a significant downturn, losing nearly $4 billion over the past month due to a combination of ETF outflows, liquidity tightening, and token unlocks. Last week alone, the market saw $173 million in outflows, marking the fourth consecutive week of withdrawals, with U.S. spot Bitcoin and Ethereum ETFs leading the trend. Notably, BlackRock's IBIT ETF recorded a single-day outflow of $84.19 million, while Ethereum ETFs saw a total withdrawal of $41.83 million. The market's liquidity has been tightening over the past two years, with recent data indicating a drop in liquidity risk readings from 0.99 to below 0.8 by February 2026. This has contributed to the market's decline, as increased supply from token unlocks has added to the selling pressure. For instance, ZRO and KAITO are set to release $42 million and $10.35 million, respectively, into circulation, further exacerbating the situation. These factors have led to increased volatility and a cautious market sentiment, as investors remain wary of further declines.