The cryptocurrency market has resumed its downward trajectory following a brief recovery from the turbulence triggered by Donald Trump’s tariff announcement on Canada and Mexico. The latest blow came with Trump’s declaration of a 25% tariff on the European Union, announced during his first cabinet meeting on February 26.
Bitcoin’s Market Woes Continue
According to data from CoinMarketCap, the global crypto market capitalization has fallen by 3.61% in the past 24 hours, settling at $2.83 trillion. Bitcoin (BTC), the market’s bellwether, is down 3.01%, trading at $86,112.34. This marks its third consecutive day of losses, further exacerbating investor concerns.
BTC briefly plunged to $82,256—its lowest since November 11, 2024—before experiencing a slight rebound. However, analysts warn that further corrections could be imminent before stability returns.
Analysts Weigh In
Independent market analyst Scott Melker, also known as “The Wolf of All Streets,” highlighted a potential bullish divergence in Bitcoin’s price action. He pointed out that BTC’s Relative Strength Index (RSI) remains oversold but still shows signs of a higher low. Melker noted that a definitive rebound is yet to materialize.
$BTC 4-HOUR
— The Wolf Of All Streets (@scottmelker) February 26, 2025
Bullish divergence with oversold RSI STILL very much in play. At the moment, RSI still is making a higher low. We need to see a clear "elbow up" on the next candle to confirm.
Nothing here yet. https://t.co/s5hYSszDpy pic.twitter.com/vRBjnGMntV
Meanwhile, the Crypto Fear & Greed Index has plunged to 10, signaling “extreme fear.” This drastic sentiment shift has left traders divided over Bitcoin’s potential bottom, with estimates ranging between $80,000 and $71,000.
Broader Market and Economic Uncertainty
Adding to the chaos, Bitcoin’s worst three-day performance since 2022 has been accompanied by substantial capital outflows from spot BTC ETFs. Velo, a prominent market analyst, shared data on X (formerly Twitter) painting a grim picture of dwindling investor confidence.
Beyond crypto, the economic landscape remains uncertain. Trump’s administration has issued directives for large-scale federal layoffs, further unsettling financial markets. The S&P 500 has also suffered declines, reflecting mounting economic concerns.
The market’s instability has triggered massive liquidations, wiping out $340 million in just an hour and erasing over $150 billion from the market in the past 24 hours. The sell-off has deepened losses, fueling panic among traders.
To make matters worse, the recent Bybit hack on February 21 resulted in a staggering $1.4 billion loss—the largest financial heist in history. This security breach has further shaken investor confidence, amplifying uncertainty in an already fragile market.
Also Read: Trump Coin Airdrop: How to Claim $50 Free Crypto and What’s at Stake
With volatility at a peak and economic pressures mounting, Bitcoin’s future remains uncertain. Whether it finds new support or continues its decline will depend on market resilience and broader macroeconomic developments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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