Market Overview
Bitcoin (BTC) plunged below $80,000 on February 28, 2025, erasing nearly all gains made since former U.S. President Donald Trump took office with a pro-crypto agenda. The broader cryptocurrency market followed suit, with Ethereum (ETH), BNB, XRP, and Solana (SOL) dropping 6.6%–8.6% within 24 hours.
Key Metrics:
- Bitcoin’s Market Cap: ~$1.59 trillion
- 24-Hour Trading Volume: $64.63 billion
- Circulating Supply: 19.83 million BTC
Why Is the Crypto Market Declining?
1. Macroeconomic Uncertainty
Avinash Shekhar, CEO of Pi42, highlights:
“Trump’s escalating tariff policies, regulatory ambiguities, and the $1.5 billion Bybit hack have shaken investor confidence. A $106 million liquidation event triggered further volatility as Bitcoin briefly touched $81,000.”
2. Institutional Sell-Offs
The CoinDCX Research Team notes:
- BlackRock offloaded billions in BTC and ETH, accelerating the bearish trend.
- Altcoins like Litecoin (LTC) show resilience, defending key support at $120.
3. Regulatory Developments
- The SEC closed investigations into Consensys and dropped lawsuits against Coinbase, hinting at clearer regulations.
- Most memecoins were exempted from securities classification due to their hype-driven nature.
4. Historical Context
- November 2024: BTC hit $75,011 post-Trump’s election victory, fueled by ETF inflows.
- January 2025: Peaked at $109,350 before the current downturn.
FAQs: Addressing Key Concerns
Q1: Will Bitcoin recover soon?
While some analysts predict a rebound to $84,000, market sentiment remains cautious due to macroeconomic headwinds.
Q2: How do Trump’s policies impact crypto?
Tariff wars (e.g., 10% on China) and regulatory delays have compounded market uncertainty.
Q3: Are altcoins a safer bet during volatility?
Not necessarily. Even major altcoins like ETH dropped sharply, though Litecoin shows short-term resilience.
Strategic Takeaways for Investors
- Monitor Technical Levels: Watch for support near $78,000** and resistance at **$84,000.
- Diversify Cautiously: Consider assets with strong fundamentals (e.g., Litecoin).
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Disclaimer: This content is for informational purposes only. Cryptocurrency investments are volatile; conduct independent research before trading.