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  • Bitcoin drops below $84k as markets react to tariffs

    Bitcoin drops below $84k as markets react to tariffs

    BTC on stack of cryptocurrencies with falling crashing graph in background

    • Bitcoin price fell to lows of $82,131, dipping to levels seen in November 2024.
    • The BTC sell-off happens after Trump’s latest tariffs announcement, including a 25% tarriffs on the EU.
    • Equities also dumped, with the S&P 500 seeing $500 billion wiped off.

    The price of Bitcoin dropped more than 6% in 24 hours to break below $84,000 on Wednesday.

    Notably, Bitcoin price has touched its lowest levels since November 2024, when it rose amid election momentum. According to crypto and stocks trader IncomeSharks, the market is bearish.

    BTC sold-off as the crypto market reacted to trade war sentiment, with this coming on the heels of the latest tariffs announcement by President Donald Trump.

    Having announced that the 25% tariffs on Canada and Mexico and 10% on China will go into effect in April, Trump said he would slap 25% tariffs on the European Union. The news saw the S&P 500 fall, with over $500 billion in market cap wiped off.

    Bitcoin dips amid ETFs outflows

    As equities reacted to the potential trade war, Bitcoin crashed below $84,000. Per data from CoinMarketCap, the price of BTC hit lows of $82,131.

    BTC price also dumped amid massive selling pressure from ETFs. Major issuers Fidelity, Ark and Grayscale all sold. BlackRock, which sent millions of dollars worth of BTC and ETH to an exchange on Tuesday, also offloaded $150 million of the flagship coin.

    While bulls had rebounded to above $84k at the time of writing, sentiment remains weak and a retest of $80k is possible. Crypto analyst Rekt Capital shared the chart below.

    According to analysts, the markets are pricing in a possible “rebound in inflation” with investors factoring in likely spikes in the prices of goods.

    “What’s interesting is the SHARP divergence between Gold and Bitcoin since the trade war began. While Gold is up +10%, Bitcoin is down -10%, even though Bitcoin is historically viewed as a “hedge” against uncertainty,” the Kobeissi Letter said.

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  • Bitcoin drops below $90k as Trump confirms trade tariffs

    Bitcoin drops below $90k as Trump confirms trade tariffs

    Dogecoin and other major altcoins dip

    • This is the lowest Bitcoin has dropped since November 2024
    • Trump’s trade tariffs are likely impacting crypto market prices as investors look elsewhere to trade
    • Two crypto hacks days apart have worsened investor sentiment

    Bitcoin’s price has dropped below the $90,000 mark, signalling the lowest decline for the number one crypto asset since November 2024.

    Bitcoin’s price at $87,000. Source: CoinMarketCap

    On February 25 at 10:25 UTC, Bitcoin was trading at around $87,190, according to data from CoinMarketCap. At the time of publishing, it has risen slightly but remains under $90,000, a key figure to stay in bullish territory.

    According to Arthur Hayes, BitMEX’s co-founder, Bitcoin could drop to $70,000 if large hedge funds sell their positions in Bitcoin exchange-traded funds (ETFs).

    Impact of Trump’s tariffs

    The drop in value comes amid uncertainty about inflation, US President Donald Trump’s policies, and geopolitical events.

    Yesterday, Trump confirmed 25% trade tariffs on Canada and Mexico, causing the market to react as investors look to other avenues to put their money.

    According to James Toledano, COO at Unity Wallet, many believed that Bitcoin’s price would continue rising once Trump entered the White House, adding to CoinJournal:

    “But the reality is that the price has gone south, likely due to tariff trade wars, fragile peace talks in Eastern Europe, and fears around DeepSeek’s impact on the US tech sector. But this could also just be a momentary lapse of pricing reason.”

    Security breach at Bybit

    Last week, Hong Kong-based crypto exchange Bybit was the target of a major hack, resulting in the loss of nearly $1.5 billion worth of Ethereum from a single wallet.

    Despite Ben Zhou, Bybit’s founder and CEO, saying it had “fully closed the ETH gap,” raising funds to cover the losses and boost investor confidence, the fact remains that investors are shaken.

    Not only that, but neobank Infini suffered a $50 million hack yesterday. According to reports, insider access enabled the hacker to manipulate the platform’s smart contract it had developed after retaining administrative privileges unbeknownst to Infini.

    Following the theft, the hacker converted the stolen USDC into Dai and then purchased 17,696 Ethereum, valued at around $49 million at the time.

    “Additionally, global macroeconomic uncertainty and a downturn in traditional markets have weighed on Bitcoin, as risk assets remain highly sensitive to external pressures,” said Toledano.

    “Note, the S&P 500 which is the bellwether for the equities market is down over 4% over the last month and over 2% this past week alone. While 2 and 4 percentage points mean little in the cryptosphere, these figures are notable in TradFi from a loss perspective.”

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