Bitcoin has declined more than 25% from its January peak, continuing to face downward pressure as investors shift toward safer assets following the latest tariff threats by former U.S. President Donald Trump. On Friday, February 28, Bitcoin briefly plunged 7.1%, marking a dramatic reality check for one of the so-called "Trump trades."
Market Context and Recent Performance
- Current Price Levels: Bitcoin has fallen to its lowest since early November 2023.
- Broader Crypto Decline: The sell-off coincides with a widespread crypto downturn, with Ethereum (ETH), Polkadot (DOT), and XRP each dropping over 7% on the same day.
- Historical Parallels: BTC Markets CEO Caroline Bowler likened the sentiment to the 2022 "crypto winter," triggered by rising interest rates and industry turmoil.
Key Drivers of the Drop
- Macroeconomic Concerns: Investors are reacting to geopolitical uncertainty and Trump's tariff policies.
- Trade Tensions: Trump's announcement of 25% tariffs on Canada/Mexico (effective March 4) and 10% tariffs on Chinese imports fueled market anxiety.
- Risk-Off Sentiment: Asian stocks fell broadly, and European futures dipped, but cryptocurrencies bore the brunt due to their volatility.
Bitcoin's February Performance
- Monthly Decline: Over 20% drop in February—potentially the worst since June 2022 if losses hold.
- "Trump Trade" Reversal: The strategy of buying Bitcoin based on expectations of crypto-friendly policies has faltered amid trade war fears.
Expert Insights
- BitGo's Stefan von Haenisch: Notes traders await concrete regulatory measures, including Bitcoin reserve policies.
- YouHodler's Ruslan Lienkha: Identifies $70K as a technical support level but cautions against assuming further drastic drops.
👉 Track real-time Bitcoin price movements
FAQ Section
Q: Why is Bitcoin falling?
A: The drop reflects macroeconomic worries, trade tensions, and a broader shift away from riskier assets.
Q: How low could Bitcoin go?
A: While $70K is a key support level, market conditions remain fluid.
Q: Is this another "crypto winter"?
A: Some parallels exist, but current drivers are more tied to geopolitical factors than 2022’s industry-specific issues.
👉 Explore crypto market analysis tools
Current Price (as of February 28): ~$78,900
Note: All figures are in USD and subject to market volatility.
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