Crypto Price Declines Continue, Bitcoin Drops To 3-Month Low
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The cryptocurrency market is experiencing a significant downturn, with Bitcoin leading the decline by falling below $88,000 for the first time in months.
Bitcoin dropped to $87,630, marking a 6.78% decline over 24 hours.
This sharp sell-off wasn’t limited to Bitcoin; other major cryptocurrencies also saw substantial losses.
Ethereum, the second-largest cryptocurrency by market cap, fell to $2,3752. Solana, another prominent altcoin, experienced a more severe drop of nearly 15%.
The reasons behind this market-wide decline are multifaceted.
One significant factor is the announcement of new tariffs by President Donald Trump on Canadian and Mexican imports, set to be implemented on March 4.
This news has sparked concerns about potential trade wars and global economic uncertainty, affecting both traditional and crypto markets.
Adding to the bearish sentiment was a major security breach at Bybit, a Dubai-based cryptocurrency exchange, where hackers stole approximately $1.5 billion worth of digital assets.
This incident has further eroded investor confidence in the crypto ecosystem.
Institutional investor behaviour has also played a role in the downturn.
Bitcoin ETFs have recorded over $500 million in outflows for two consecutive weeks, indicating a decrease in demand from large-scale investors.
This shift in institutional sentiment has contributed to the overall market decline.
The Crypto Fear & Greed Index, a measure of market sentiment, plummeted from 49 to 25, indicating a rapid shift towards extreme fear in the market.
This sharp decline in sentiment is one of the most significant since September and reflects the sudden bearish turn in investor outlook.
As the crypto market navigates these challenges, traders and investors remain cautious, closely monitoring further developments that could impact the prices of Bitcoin and other leading cryptocurrencies in the coming weeks.
Source: CoinMarketCap