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Bitcoin Crashing Shakes Crypto Market

Bitcoin Crashing Shakes Crypto Market | OngoingNow24

Bitcoin Crashing Shakes Crypto Market | OngoingNow24

On February 28, 2025, Bitcoin is making headlines again. The cryptocurrency has crashed, dropping 24% from its all-time high. Investors are reeling from the sudden decline. Market analysts point to multiple triggers behind this fall. The news has sent shockwaves through the crypto community.

Bitcoin fell below $80,000 on February 27. This sharp drop erased weeks of gains. Traders watched in dismay as prices hit $88,200 earlier this week. The decline triggered $1.34 billion in liquidations. Over 367,500 traders were wiped out in just 24 hours.

Global trade tensions are a major factor. Reports of new tariffs have rattled markets. The U.S. dollar strengthened as a result. This put extra pressure on Bitcoin’s value. Investors are now bracing for more volatility ahead.

Another blow came from a massive hack. The Bybit exchange was compromised last week. Hackers stole $1.4 billion in funds. This news sparked fear, uncertainty, and doubt (FUD). Many traders rushed to sell, driving prices lower.

Why Is Bitcoin Crashing Now?

Analysts at Matrixport have weighed in. They predict the correction could last until March or April. Bitcoin filled its CME gap recently. However, the road ahead looks bumpy. The market may hover near the 200 EMA for weeks.

Posts on X reflect growing concern. Users note a 6% drop in just 24 hours. Some fear support near $73,000 could break. Others point to unwinding basis trades by institutions. This adds to the bearish sentiment.

The SEC’s moves are also in focus. A closed-door meeting on February 27 sparked rumors. Some speculate the agency might drop its Ripple case appeal. While unrelated to Bitcoin directly, it affects market mood. Investors are watching regulators closely.

Institutional interest seems to be waning too. U.S. Bitcoin spot ETFs saw outflows of $489.60 million. This happened despite prices consolidating near $98,000 earlier this month. Weakness among big players is a red flag. It suggests confidence is slipping.

Bitcoin Crashing
Bitcoin Crashing

What’s Next for Bitcoin and Crypto?

Bitcoin’s fall has dragged altcoins down too. Ripple’s XRP lost 4% near its $2.12 support. Ethereum is also struggling to hold $3,000. The broader market feels the heat. A 10%-30% altcoin rally seems distant now.

Technical indicators aren’t encouraging either. A bearish divergence appeared on Bitcoin’s weekly chart. This echoes patterns from the 2020 cycle top. Some traders predict a rotation to altcoins soon. Yet, the mood remains cautious.

Meanwhile, stock markets are thriving. Europe and the U.S. hit new highs recently. This contrast puzzles crypto investors. The U.S. dollar’s drop earlier this month didn’t help Bitcoin. Global dynamics are clearly at play.

How Are Investors Reacting?

Fear is gripping the crypto community. The Fear Index hit 25 this week. Posts on X call it “extreme fear.” Many see this as a capitulation phase. Anger toward altcoin losses is growing too.

Still, some see opportunity. A demand zone might form soon. Analysts suggest Bitcoin could bounce to $97,000-$100,000. Ethereum might climb back to $3,000. But timing remains uncertain.

The Pi Network adds a twist. Its community awaits Pi Day on March 14, 2025. This event could lift sentiment if Bitcoin steadies. For now, though, the focus is on survival.

Bitcoin’s crash is a stark reminder. Crypto markets are volatile and unpredictable. Trade tensions, hacks, and institutional moves have converged. Investors must navigate this storm carefully. The next few weeks will be critical.

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