Nasdaq 100- Ethereum & Bitcoin Hit by Market Volatility After Geopolitical News
Nasdaq 100– On February 28, 2025, a significant shift occurred in the financial markets, triggered by President Trump’s remarks about Ukrainian President Zelensky’s involvement in potentially escalating World War 3. This geopolitical tension reverberated through global markets, with the Nasdaq 100 futures dropping by over 200 points at 10:45 AM EST. This led to a marked impact on cryptocurrency markets as well, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experiencing notable declines.
Bitcoin (BTC) was trading at $58,230, marking a 3.5% decline from its previous close of $60,340 (CoinDesk, 2025). Ethereum (ETH) mirrored this trend, dropping 4.2% from $3,289 to $3,150 (Coinbase, 2025). The sharp declines in these leading cryptocurrencies were a direct result of the heightened uncertainty in global markets, triggered by the political situation.
Trading Volume Surge: Increased Market Activity Amid Declines
In the wake of President Trump’s comments, the cryptocurrency market saw a surge in trading volumes. For instance, BTC/USD trading volume spiked to 12.5 million BTC within the last 24 hours, up from 9.8 million BTC the day before (Binance, 2025). Similarly, ETH/USD saw trading volumes rise to 6.5 million ETH, compared to 5.2 million ETH previously (Kraken, 2025). This indicates heightened volatility and a shift in market sentiment, as investors rushed to respond to the news.
The sudden drop in prices triggered a shift in investor sentiment. The Fear and Greed Index, which tracks market mood, plummeted to 22, signaling extreme fear among investors (Alternative.me, 2025). This fear-driven sentiment led to a marked increase in short positions on major crypto exchanges. On BitMEX, open interest for Bitcoin shorts rose by 35%, from 15,000 BTC to 20,250 BTC (BitMEX, 2025). Similarly, Ethereum shorts surged by 28% on Deribit, from 8,000 ETH to 10,240 ETH during the same period (Deribit, 2025). This indicates that investors were hedging against further declines in cryptocurrency prices.
Altcoins Also Suffer: Cardano, Solana See Significant Losses
It wasn’t just Bitcoin and Ethereum that were affected. Other prominent altcoins such as Cardano (ADA) and Solana (SOL) also saw steep declines. ADA/USD fell to $0.35, a 5.4% drop from $0.37, while SOL/USD dropped to $115, down 6.1% from $122.50 (Binance, 2025). These declines reflect the broader market’s reaction to the geopolitical developments, affecting investor sentiment across the crypto space.
Technical indicators pointed to further bearish momentum in the market. The Relative Strength Index (RSI) for BTC/USD dropped to 35, indicating that Bitcoin was oversold, but suggesting that there could still be further downside risk before any potential recovery (TradingView, 2025). Similarly, Ethereum’s Moving Average Convergence Divergence (MACD) displayed a bearish crossover, with the MACD line moving below the signal line, indicating that downward momentum might persist (Coinbase, 2025). These technical signals indicate that while the market has seen a sharp decline, further drops could still be on the horizon.
On-chain data also highlighted the growing distress in the market. The number of active Bitcoin addresses fell by 10%, from 865,000 to 780,000 (Glassnode, 2025). Additionally, Ethereum’s DeFi ecosystem saw a reduction in total value locked (TVL), dropping 8% from $95 billion to $87.4 billion (DeFi Pulse, 2025). This suggests that many investors are seeking safer assets amid the growing uncertainty, further indicating a flight from riskier investments like cryptocurrencies.
AI Tokens See a Decline Amid Broader Market Sell-off
Interestingly, even AI-related tokens were not immune to the broader market sentiment. While no direct developments in AI were reported on the same day, AI tokens like SingularityNET (AGIX) and Fetch.AI (FET) mirrored the broader market’s downward trend.
AGIX/USD fell 4.8% from $0.58 to $0.55, while FET/USD dropped 5.2% from $0.79 to $0.75 (KuCoin, 2025). The trading volumes for these AI tokens also saw significant increases, with AGIX/USD volume rising to 1.2 million AGIX, up from 0.9 million AGIX the previous day, and FET/USD volume rising to 0.8 million FET from 0.6 million FET (Huobi, 2025). This suggests that while AI tokens were not directly affected by the geopolitical news, they still faced the broader market pressures driven by the event.
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