The price of Bitcoin has plummeted. What is happening in the crypto market?

^{Photo: RIA Novosti}
According to CoinDesk, on February 25, the price of bitcoin fell by 5.5 percent to $88,800. This is the lowest level since mid-November. Over the past month, the world's most popular cryptocurrency has fallen by 11.4 percent. Let's look at the reasons for this below.

Experts attribute the decline to a number of factors:

US macroeconomic policy

US President Donald Trump's introduction of import tariffs in February 2025 has raised concerns about rising inflationary pressures and a possible increase in interest rates by the Federal Reserve. This has reduced investor interest in risky assets, including cryptocurrencies.

Bybit crypto exchange hack:

The recent hack of the Bybit exchange, which resulted in the theft of approximately $1.5 billion in cryptocurrency, has undermined investor confidence in the security of digital assets.

Libra memcoin controversy:

After a sharp increase in capitalization to $4.5 billion, the value of Libra memcoin has fallen by 95%, which has increased investor concerns about the stability and reliability of the new crypto asset.
Currently, Bitcoin continues to fluctuate between $86,000 and $89,000.

Bitcoin price dynamics in recent months

November 2024. Bitcoin reached a record high of over $97,000. This growth was due to the Trump administration's cryptocurrency policy and the Federal Reserve's interest rate cuts, which increased investors' interest in risky assets.

December 2024. After reaching a peak in November, the price of Bitcoin began to decline and by the end of December fell below $91,000. This decline was due to investor profit-taking and a seasonal decrease in trading activity during the holidays.

January 2025. At the beginning of the year, Bitcoin grew again, exceeding the $100,000 mark. This was due to the purchase of Bitcoin by large corporations, including information that MicroStrategy bought an additional 1,020 BTC.

February 2025. For a month, Bitcoin showed instability, falling below $90,000 due to macroeconomic uncertainty and events that undermined investor confidence in the cryptocurrency market. Follow “Zamin” news on “Telegram”