The cryptocurrency market is experiencing notable volatility, with Bitcoin (BTC) leading a downward trend. As of February 25, 2025, Bitcoin’s price has fallen below $90,000, marking its lowest point since mid-November. This decline reflects a broader market downturn influenced by economic uncertainties and recent security breaches within the crypto ecosystem.
Economic Factors Impacting Cryptocurrency Prices
Global investors are exhibiting increased caution due to signs of a potential slowdown in the U.S. economy. President Donald Trump’s reaffirmation of a 25% tariff on imports from Canada and Mexico has intensified concerns over potential trade wars and inflation. This policy stance has led to a retreat from riskier assets, including cryptocurrencies, as investors seek stability amid the heightened economic uncertainty.
Security Breaches Exacerbate Market Declines
The recent hack of the Dubai-based cryptocurrency exchange Bybit has further shaken investor confidence. Hackers successfully stole approximately $1.5 billion worth of Ethereum, marking one of the largest security breaches in the history.
