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

^{Photo: “RIA Novosti”}
According to Coindesk, on February 25, the price of Bitcoin dropped by 5.5% to $88,800. This is the lowest level observed since mid-November. Over the past month, the world's most popular cryptocurrency has decreased by 11.4%. The Daryo publication notes that we will look at the reasons for this below writes.

Experts link the decline in the exchange rate to a number of factors:

US macroeconomic policy

The introduction of import tariffs by US President Donald Trump in February 2025 raised concerns about increased inflationary pressure and the possibility of rising interest rates by the Federal Reserve System. This has reduced investors' interest in risky assets, including cryptocurrencies.

Bybit crypto exchange hack:

The recent hacking attack on the Bybit exchange resulted in the theft of approximately $1.5 billion worth of cryptocurrency, which has undermined investors' confidence in the security of digital assets.

Libra meme coin controversy:

After a sharp increase in capitalization to $4.5 billion, the value of the Libra meme coin dropped by 95%, which heightened investors' concerns about the stability and reliability of new crypto assets.
Currently, Bitcoin continues to fluctuate between $86,000 and $89,000.

Bitcoin price dynamics in recent months

November 2024. Bitcoin surpassed $97,000, reaching a record level. This increase was related to the cryptocurrency policy of the Trump administration and the Federal Reserve System's interest rate cuts, which boosted investors' interest in risky assets.

December 2024. After reaching its highest peak in November, the price of Bitcoin began to decline and fell below $91,000 by the end of December. This decline was associated with investors taking profits and a seasonal decrease in trading activity during the holiday period.

January 2025. At the beginning of the year, Bitcoin rose again, surpassing the $100,000 mark. This was due to reports of large corporations purchasing Bitcoin, including MicroStrategy's acquisition of an additional 1,020 BTC.

February 2025. Over the course of a month, Bitcoin fell below $90,000 due to macroeconomic uncertainty and events that undermined investors' confidence in the cryptocurrency market, showing instability.