Bitcoin Crashes Below $87K—What’s Triggering the Crypto Market Sell-Off?
Another sharp decline has shaken the crypto market. On February 25, Bitcoin fell below $87,000, Ethereum dipped under $2,400, and Solana dropped beneath $140. Is this just short-term volatility or a sign of a deeper downturn?
Even the recent Bybit exchange hack—the largest in crypto history—failed to rattle the market as much as the latest downturn. At the time, the response remained measured, but today, the Fear and Greed Index has plunged to 25, signaling extreme fear, as reported by Alternative.
One possible cause? Macroeconomic turbulence. Donald Trump has reignited debates over tariffs on Canada and Mexico, reaffirming his firm position. Analysts at QCP Group also point to this factor in their latest report. Curious about how macroeconomic shifts affect Bitcoin’s price? Read our in-depth analysis on the macroeconomic BTC forces.
Trump’s trade wars have once again sent shockwaves through the crypto market, triggering a plunge reminiscent of an earlier meltdown this year. At that time, Donald Trump first hinted at escalating tariffs on neighboring countries, setting off a chain reaction. ETH bore the brunt of the downturn, nearly crashing to $2,000—a brutal blow for the second-largest cryptocurrency.
Check this out: Donald Trump’s Tariff Wars Shake the Crypto Market
The turmoil hasn’t spared U.S. Bitcoin ETFs either. SoSoValue reports that net outflows on February 24 topped $500 million. Meanwhile, BitMEX co-founder Arthur Hayes suggested on X that many IBIT holders—particularly hedge funds—may be offloading their ETF shares.
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