Bitcoin drops below $81,000
Bitcoin’s price has fallen below $85,000 amid escalating concerns over U.S. trade policies, triggering a broader sell-off across the cryptocurrency market.
As of 10:22 AM IST on February 27, 2025, Bitcoin was trading at $84,762, down 4.9% over the past 24 hours. Ethereum also experienced a significant decline, dropping 7.1% to $2,317.
The downturn in the crypto market coincides with uncertainty surrounding U.S. tariffs on Canada and Mexico. President Donald Trump suggested a potential extension of the tariff deadline to April 2, only for a White House official to later clarify that the original March 2 deadline remained unchanged. This ambiguity has contributed to market volatility.
In response to these developments, U.S. Treasury yields have risen, with the two-year yield climbing to 4.09% and the 10-year yield reaching 4.2772%. These increases indicate a shift towards safer assets, adding pressure on riskier investments like cryptocurrencies.
The global crypto market capitalization has decreased by 4.2% to $2.81 trillion
Bitcoin’s market cap now stands at $1.679 trillion, with a dominance of 59.73%. Its 24-hour trading volume fell by 15.85% to $67.18 billion, while stablecoins accounted for $146.59 billion, or 95.08%, of the total volume.
Vikram Subburaj, CEO of Giottus, noted that the crypto market is experiencing a sharp drawdown amid weak macroeconomic sentiment. He highlighted that over 157,000 leveraged traders were liquidated, totaling $766 million in losses, with long positions comprising 80% of these losses. Subburaj also mentioned continued outflows from spot Bitcoin ETFs, with $336 million withdrawn recently, and the Crypto Fear & Greed Index plunging to ‘Extreme Fear’ at 10, its lowest since June 2022.
Avinash Shekhar, Co-Founder & CEO of Pi42, observed that the crypto market has entered a bear phase, with Bitcoin declining over 20% from its January peak of $109,350 to an intraday low of $83,740.
Other major altcoins have also suffered losses
XRP fell 6%, BNB dropped 3.2%, Solana decreased by 4.7%, and Dogecoin declined 3.9%. Cardano, Chainlink, Sui, Avalanche, Stellar, Litecoin, and Hedera recorded losses ranging from 1% to 7%.
Edul Patel, CEO and Co-founder of Mudrex, suggested that if Bitcoin reclaims the $90,000 level, it could confirm a breakout and reignite bullish sentiment, potentially pushing BTC toward the $100,000 mark. Conversely, Bitcoin might test the $80,000 level before making a decisive move.
The cryptocurrency market remains volatile, with investors closely monitoring geopolitical developments and macroeconomic indicators for further direction.
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