The price of Bitcoin dropped below $80,000 on February 28, 2025, a staggering drop from an all-time high of over $108,000. This was caused by macroeconomic sentiments like tariffs imposed by U.S. President Donald Trump and massive sell-offs by Asian investors. The market cap of Bitcoin has thus collapsed, a common indicator of fear in the crypto market.
Recent Market Trends
For the first time in history, Bitcoin fell by about 28% in a week. The currency fell to an all-time low of $78,344, representing a drop of more than 24% over the last month. According to data from CoinMarketCap, Bitcoin’s market capitalization fell by 20% over the last week and 23% over the last month. The volume of trading is at $160.25 billion, which represents a greater level of market activity.
Ethereum has also been under immense pressure, dipping to its year-low of $2,101. The decline is primarily a result of investor sentiment turning negative with ongoing macroeconomic problems and fear of recent hacks in the markets, as well as the Bybit exchange hack, where $1.4 billion of cryptocurrency was lost.
Reasons for the Fall
There are some reasons which are making the price of Bitcoin drop:
First, the American-Chinese trade war has also driven inflationary fears. Uncertainty has triggered increasingly heavy selling pressure against risk assets, and cryptocurrencies are not left behind. Economists point out that an increase in the U.S. dollar is responsible for the issues since investors are staging a flight to quality.
Additionally, the crypto community once celebrated Trump’s election, which led to a price increase. With his current tariff policy, however, the majority have done an about-face. Reasonable American consumption will have a ripple effect globally and hit crypto investments in the wrong direction.
Lastly, there has been a trend observed where Asian investors have been selling Bitcoin and Ethereum because of the unclear regulatory strategy of the U.S. government. This has also been one of the reasons for the bearish trend in the market, as is evident from the sharp price drops.
Expert Insights and Future Outlook
Though overall volatility dominates, there are certain optimistic expectations from experts. Mudrex CEO Edul Patel explained that the bull market corrections are typical, opening the way for more growth. Historically, Bitcoin has been trending to recover after consolidations.
Standard Chartered’s crypto expert Geoffrey Kendrick opines that Bitcoin can reach $200,000 by the end of this year and as much as $500,000 within the term of President Trump’s presidency if regulatory clarity gains momentum and sentiment cools down.
Meanwhile, Bitget Research’s Ryan Lee cautions that another drop would make Bitcoin retest the support range of $70,000 to $75,000. The next few weeks will determine whether the currency will be able to establish solid ground or otherwise slide further down.
The cryptocurrency market is currently under unprecedented stress, with Bitcoin dipping below the $80,000 level due to macroeconomic uncertainty and mandatory selling from investors. Short-term prospects do not look good, but history suggests that bounce is on the cards if market fundamentals return to normal.
