Bitcoin in collapse After months of enthusiasm: the cryptocurrency most famous in the world, after rebounding around 99,000 dollars, has slipped to 91,000 dollars.
A rupture of the growth balances that could frighten investors and entice them to flee, pushing the crypto towards further losses. There are several causes that determined the drop in bitcoin, and the paw of Donald Trump.
Bitcoin falling after months
The critical moment, which arrived after almost 90 days of exchanges in an interval between 91,000 and 102,000 dollars, led to losses for at least 1.2 billion dollars in the last few hours. The collapse of the Bitcoin market that began on Monday 24 February worsened during the early hours of Tuesday 25, bringing the BTC to less than 89,000 dollars (the lowest level from mid -November) and then raised it.
The futures that replicate Bitcoin have recorded liquidations for over 530 million dollars, while the bets on Ether (ETH) saw over 294 million dollars evaporate.
Because the collapse of Bitcoin
Taking note of the situation, the capital questions are now two: why does the drop in Bitcoin arrives right now? And why are the amounts so important?
The reality is that, after months of trust, Bitcoin collapsed because it ended up at the center of a perfect storm. There are at least five trends that worried the cryptocurrency that seemed unassailable.
The collapse of the market traditionalsince Bitcoin correlation with actions amplifies its losses.
Slows down, then, The institutional demand through funds negotiated on the stock exchange (ETF) spot. Bitfinex He reported deceased for a total of 552.5 million dollars from Bitcoin Etfs in the week ended on February 21, marking a constant trend of withdrawals. This contraction suggests that i Great investors They are carrying out profits or redistributing capital due to the uncertain market context.
It probably weighs a certain feeling “Rebassist”: The influencer of the cryptocurrencies and former CEO of Bitmex Arthur Hayes fomented defeatists with a post on X of February 25, 2025. Hayes warned against an imminent “city of the Goblin” for Bitcoin. The term, in jargon, reports a serious collapse of prices. According to Hayes, the potential triggering factors are the speculative funds that hold positions in Blackrock’s Ishares Bitcoin Trust (Ibit).
The last probable factor is a certain fatigue from consolidationthat is, the lack of SLANCIO of Breakout exposes sales to sales. According to Bitfinex analysts, prolonged consolidation after 90 days of exchanges at the maximum amounts caused the lack of a “impetus necessary for a supported break and this led to a period of contraction and consolidation in almost all the main cryptocurrencies”.
What does Donald Trump have to do with it
Trump’s tariff policy also weigh, with the fears of inflation that are removing investors from risky assets. The duties are proving to be a double -edged sword under many profiles. But there is also another element to weigh: during its long and aggressive election campaign, Donald Trump had announced greater consideration for cryptocurrencies by the American administration. A few days before the settlement, Trump had even issued one in his name, the $ trump. However, this meme coin has deflated within a few weeks, making the big ages lose money, also because of the fact that Trump himself said he did not know his operation. It is possible that this has undermined the trust of those who thought that the Trump administration would be a champion of the Crypto without if and without but.
And there is also the other: “Despite the recent pro-Bitcoin position of the President of the United States Donald Trump, three state proposals For Bitcoin reserves they are bankruptcy In Montana, North Dakota and Wyoming. The reluctance to adopt Bitcoin state reserves underlines political risks, since political decision makers avoid speculation accusations with taxpayers’ funds, “said Valentin Fournier, analyst at BRN.
