Bitcoin, the flagship cryptocurrency, has experienced a steep decline. On February 25, 2025, its price dipped below $91,000; shortly after, it slid further to below $90,000. This downturn has erased recent gains, sending shockwaves through the crypto market as investors confront economic uncertainty, security breaches, and regulatory challenges.
Below, we explore the timeline of this Bitcoin price drop, its reasons, its broader impact, and what analysts say about the crypto landscape’s future.
Bitcoin price movement timeline: A sharp fall from $106,000
The recent plunge in Bitcoin’s price kicked off on February 25, 2025, when it dropped from a peak of approximately $106,000 to $91,000, as observed in various posts on X. One user noted that Bitcoin “tapped $91k” that morning, possibly signalling a key technical level. However, the slide continued, with Bitcoin falling below $90,000 later that day—its lowest since November 18, 2024, according to Reuters. This rapid decline marks a stark reversal from earlier optimism in 2025, when Bitcoin breached the $100,000 mark, buoyed by expectations of favourable crypto policies under the Trump administration.
Why Bitcoin’s price dropped: Unpacking the triggers
Multiple forces have aligned to drive Bitcoin’s price lower. First, global markets are reeling from President Donald Trump’s proposed tariffs on imports from Canada and Mexico, which are slated to take effect in early March. These measures have sparked fears of economic strain in the U.S., which Reuters cites as a primary cause of “market nerves” impacting the crypto sector. This uncertainty coincided with a four-day losing streak in the S&P 500, amplifying a risk-off sentiment hitting assets like Bitcoin hard.
Another major blow came from the Bybit exchange, the world’s second-largest crypto platform, which suffered a staggering $1.5 billion ether theft last week. Blockchain firm Elliptic labelled it “almost certainly the single largest known theft of any kind in all time.” The Bybit hack has reignited concerns about security on centralised exchanges, undermining confidence in the crypto ecosystem and adding downward pressure on Bitcoin’s price.
On the regulatory front, Bitcoin faced setbacks as Montana and South Dakota rejected Bitcoin Reserve Bills that would have classified it as a strategic asset. South Dakota opted to delay its decision for further study, but these rejections—reported by bitcoinethereumnews—have dampened hopes for broader Bitcoin adoption in the U.S., contributing to the bearish sentiment. Though not the primary driver, this news has compounded the market’s woes.
Finally, the crypto market is caught in a broader sell-off fueled by pervasive risk aversion. The Fear and Greed Index has plummeted to 25, indicating “extreme fear,” while CoinGlass reported $697.6 million in long liquidations on centralised exchanges over the past 24 hours. Altcoins like dogecoin, solana, and cardano have shed roughly 20per cent of their value, per CoinGecko, underscoring the widespread nature of this downturn.
Ripple effects across the Crypto market
The fallout from Bitcoin’s price drop has rippled across the crypto market, pulling other digital assets down. Ethereum, the second-largest cryptocurrency, declined 8.46per cent to $2,414.29—its lowest since October. Smaller altcoins have fared worse, with losses exceeding 20per cent in some cases. This synchronised decline has shrunk the total crypto market capitalisation, highlighting the interconnected dynamics of digital currencies and the outsized influence of Bitcoin.
Bitcoin’s descent below $91,000 and then $90,000 reflects its vulnerability to macroeconomic headwinds, high-profile incidents like the Bybit hack, and stalled regulatory progress.
While bearish analysts caution about more profound losses, flickers of retail demand suggest a potential turnaround. The crypto market remains in flux, with Bitcoin’s price trajectory hinging on critical support levels and evolving global conditions. Investors are watching closely as the next moves unfold.
Note: Use “per cent” instead of “%” in the body of the text, except in the headline.