Investor trust is being shaken as Bitcoin goes below the critical mark of 85,000 dollars because of significant instability in the market. The decline followed US President Donald Trumps announcement to levy a 25 percent tariff on European Union products. This showed that economic strategies were changing. The crypto market cap has dropped by 4%, and liquidations have gone through the roof. Bitcoin’s price hit a high point of $109,225 thanks to institutional investors. But now they are pulling back, which is causing a wave of sell-offs.
Bitcoin plunges amid economic uncertainty
At this time, Bitcoin was trading near $84,600, down 4% in the last 24 hours. After losing $1.5 billion on February 25, the market reacted severely wiping out another $765 million in just one day. The overall mood of the market has turned negative, and there are worries that Bitcoin could fall below $80,000, leading to even more selling and a possible drop to $70,000.
Investment Institutions Withdraw Due to Uncertainty
A study shows that $937.78 million was taken out of Bitcoin ETFs on February 25. This was the most significant single-day exit since the funds were first created. This is the fifth outflow in the last week, bringing the total amount to almost $1.5 billion. This shows that institutional opinion has changed. After the initial excitement of Trump’s victory, hopes for crypto-friendly rules have diminished. Now, the focus is on trade policies that are too harsh, which are making investors rethink their stances.
Security Concerns and Liquidity Crisis Fuel Chaos
Aside from worries about the economy, security problems have also made people less confident. The recent crash of the Solana meme coin boom has drained the market of cash and worries about the $1.4 billion Bybit hack have made people more wary of controlled exchanges. Because of this perfect storm of factors, traders need to be careful as they prepare for possible changes in regulations and more instability.
Conclusion
Some experts see this correction as a good way for the market to start over, but others warn that if prices fall below $80,000, there could be more panic selling. The long-term outlook for Bitcoin will rest on regulation changes, market liquidity, and overall economic trends.
