The cryptocurrency market is experiencing a significant downturn, with Bitcoin leading the decline. As of February 28, 2025, Bitcoin’s price has fallen below the $80,000 mark, reaching an intraday low of $78,240 before recovering slightly to $81,273. This represents a decrease of approximately 5.9% from the previous close.
Several factors have contributed to this market rout. A major incident involves a $1.5 billion heist from the Dubai-based cryptocurrency exchange Bybit, reportedly executed by the North Korean hacking group Lazarus. This event has severely shaken investor confidence, leading to substantial withdrawals from Bitcoin-backed funds. Additionally, President Trump’s recent announcement of new tariffs on goods from China, Canada, and Mexico has introduced further economic uncertainty, prompting investors to retreat from riskier assets, including cryptocurrencies.
The broader cryptocurrency market mirrors Bitcoin’s decline. Ethereum has dropped by 5% to $2,136, and XRP has fallen by 7% to $2.04. Options data indicate that traders anticipate further declines, with increased interest in put options at a $70,000 strike price for Bitcoin. Analysts suggest that without positive market shifts or confidence-boosting catalysts, the downturn may persist.
This recent downturn adds to a series of challenges faced by the cryptocurrency ecosystem, including previous exchange collapses and regulatory uncertainties. The convergence of these events has led to heightened market volatility, with investors closely monitoring the situation for potential further declines.
