Bitcoin is losing value: why the cryptocurrency has sunk to a minimum
Vitaliy Khomyak
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On February 25, Bitcoin, the world's most popular cryptocurrency, fell to its lowest level in more than three months, shedding 7.5% of its value.
This is reported by Reuters.
Now the price for it does not exceed $90,000, which has become the lowest indicator since November 18. At one point, the drop reached 7.5%, and the value of the cryptocurrency fell to $89,314.
What caused this sharp collapse
Analysts attribute the fall of Bitcoin to two main factors:
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Thus, the news about the possible introduction of a 25% tariff on imports from Canada and Mexico caused an increase in bond prices and a decrease in their yield. According to DZ Bank analyst Marcel Henrichsmeier, this has increased uncertainty in the markets, raising fears of a possible resumption of trade wars and rising inflation.
Another important event was the theft of digital assets worth about $1.5 billion from the Bybit exchange by hackers. According to research firm Elliptic, this hack was the largest in the history of cryptocurrency theft. At the same time, the cryptocurrency market reacted to this incident late, but its consequences only strengthened the negative mood among investors.
What other cryptocurrencies were affected along with Bitcoin
In addition to Bitcoin, other cryptocurrencies also suffered significant losses. Ethereum fell 9.5% to $2,386, its lowest level since October. Memcoins and tokens for the Solana and Cardano networks have lost about 20% of their value in the last week.
Tomas Erdosi, head of product at CF Benchmarks, believes that the lack of positive news, such as new regulatory developments or the approval of additional cryptocurrency ETFs, has led to stagnation in the market. In addition, investors have been actively pulling funds out of bitcoin-traded exchange-traded funds, with the largest ETFs recording a net outflow of $644 million over the past month.