The biggest cryptocurrency in the world has witnessed a drastic fall as it trades below $90,000 for the first time since mid-January 2025. At the beginning of February 25, Bitcoin was trading at almost $88,642 down 7.15% as opposed to the day before. It marked an intraday high of $95,664 with a low of $86,987, reflecting the increasing uncertainty in the market concerning this cryptocurrency.
Reasons for Decline
Macroeconomic influences combined with specific events in the cryptocurrency industry have been responsible for this fall in the value of Bitcoin. One of the main stimuli behind this sale is the recent Bybit exchange hack with 1.5 billion dollars worth of Ether. This has totally undermined investor confidence, prompting sell-offs across the crypto market.
Global economic concerns have also continued to add fuel to the already bad market. One of the most recent U.S. tariffs announcements only goes further to justify why investors should avoid risky assets at all costs. Most traders can be found withd Their because it looks like most have taken to safer investments than risky ventures such as cryptocurrencies.
Ethereum, too, crashes
Ethereum (ETH), the second-most valuable cryptocurrency by market capitalization, has also been swept in this decline. As of today, Ethereum is trading at a roughly $2,407.77 rate, recording a 9.94% loss from yesterday's close. The intraday trading range logged for Ethereum is between $2,336.93 and $2,680.11.
The Bybit hack and its collateral damages have hit on Ether hard, where investor concerns arose regarding the security of their very crypto assets. Selling pressure has thus escalated, and this decline in prices can be corroborated as part of the broader market panic.
Market Outlook
What happened further magnifies the volatility associated with the crypto market. Experts are of the view that it is possible for Bitcoin and Ethereum to see further down-the-road pressure unless the picture gets clearer regarding the Bybit hack and global macroeconomics get a little more stable.
Even after this recent downward pressure, most long-term investors remain confident of a good future for Bitcoin and Ethereum. These two cryptocurrencies have shown the past ability to bounce back from sell-offs, although short-term traders are now advised to tread carefully and follow the market closely while making any decisions.
Conclusion
To sum up, Bitcoin's fall below $90,000 and Ethereum's curious downward movement exemplify the ongoing uncertain conditions in the crypto market. Security breaches, coupled with tensions in the world economy, have elevated the sell-side pressure, thus making the atmosphere more volatile. Investors are advised to remain in the know and be cautious as the market threads its way through this turbulent phase.
Posted Using INLEO