February 28: Bitcoin Drops Below $79,000 — Is the Crypto Market Headed for Worse?
February 28 – The crypto market is facing a massive crash, with over $700 billion in value wiped out. Bitcoin (BTC) has fallen from $99,000 to $79,000, erasing all gains made during the hype around President Trump’s pro-crypto policies. What is driving this sudden drop, and how low can Bitcoin go?
Bitcoin Hits a Four-Month Low
In the last 24 hours, Bitcoin has dropped over 5%, reaching a four-month low of $79,263. One of the primary reasons for this steep decline is the growing uncertainty in the market due to President Trump’s tariff threats, creating fear among investors. This has led to widespread panic selling.
Short-Term Investors Lose Over $2 Billion
Short-term holders (STHs) have faced significant losses in the past three days, totaling $2.16 billion in losses. Investors who bought Bitcoin last week lost $927 million, while those who purchased in the last month saw $678 million in losses. These staggering figures reflect a growing loss of confidence, with more and more investors rushing to sell their holdings.
Meme Coins Under Increased Regulatory Pressure
The U.S. SEC recently declared that meme coins are not securities. While this news initially sounded positive, it ultimately worsened the situation. Meme coins, which rely on hype and social trends, have taken a significant hit alongside Bitcoin’s decline, amplifying panic throughout the market.
Disappointment in Trump’s Crypto Plans
The drop in Bitcoin‘s price is also tied to the growing disappointment surrounding President Trump’s cryptocurrency plans. Many investors had hoped for stronger pro-crypto policies, but things have moved much slower than anticipated. This has created additional selling pressure on cryptocurrencies that benefited from Trump’s support.
Altcoins Suffer Major Losses
The massive drop in Bitcoin has also dragged down major altcoins. Ethereum (ETH) is down by 7.5%, XRP has fallen 8.2%, and Solana (SOL) is down by 9%. This widespread decline has further shaken investor confidence in the crypto space.
How Low Can Bitcoin Go?
The recent decline in Bitcoin’s price has left many traders concerned. Some believe that Bitcoin needs to test the $80,000 level before it can recover. However, AlphaBTC, a crypto analyst, suggests that Bitcoin could drop further to $73,000. Moreover, Bitcoin options data indicates that some traders are betting on Bitcoin falling to $70,000, signaling increasing uncertainty in the market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment