Bitcoin, the largest cryptocurrency by market capitalization, recently fell below the USD 90,000 mark, a significant drop of approximately 8% in the last 24 hours. It is currently trading around USD 87,065. Other cryptocurrencies have also seen significant losses. Ethereum (ETH) fell 8.5% below USD 2,500, while XRP lost 9% of its value and traded at USD 2.25.
Bitcoin’s price decline also impacted the shares of companies tied to cryptocurrencies. Companies such as MicroStrategy, which recently invested nearly $2 billion in Bitcoin, saw their share value drop by nearly 10%. Similarly, platforms such as Coinbase and Robinhood have suffered declines of 4% to 5%.
Why the decline
One of the main catalysts for Bitcoin’s decline was US President Donald Trump’s announcement of new tariffs. During a press conference with French President Emmanuel Macron on February 24, 2025, Trump confirmed that his administration plans to impose 25% tariffs on imports from Canada and Mexico, and an additional 10% tariff will be imposed on Chinese goods. This factor has led to capital outflows from risk assets, affecting not only cryptocurrencies but also technology stocks. For example, companies like Tesla saw a 45% drop in sales in Europe, which was attributed to negative reactions to Elon Musk’s political activities and expectations of new models.
In addition, the recent hacking attack on Dubai’s Bybit exchange, in which approximately $1.5 billion in cryptocurrencies were stolen, had an impact on the decline. This incident significantly eroded investor confidence in the security of crypto exchanges and contributed to increased market volatility.
What to expect next
According to Bitfinex’s February Alpha report, Bitcoin is increasingly behaving like traditional financial markets. The US S&P 500 stock index has fallen 2.3% over the past five days, while the tech-oriented Nasdaq Composite has lost 4%. This stock market slump has had a negative impact on Bitcoin, which has been closely followed by the stock markets recently.
Analysts warn that if Bitcoin fails to hold key support levels, further corrections could occur. However, some experts believe that the current decline is part of natural market cycles and that Bitcoin could strengthen again in the medium to long term. However, investors should be cautious and carefully consider their investment decisions during this period of heightened volatility.
