Bitcoin Drops by 2.25% as the Crypto Market Faces Selling Pressure

Bitcoin, the world's biggest cryptocurrency, dropped by 2.25% on February 27, 2025, and is currently trading at $86,338.63, at the time of writing this article.

Bitcoin (BTC) dropped by 2.25% on February 27, 2025, and is currently trading at $86,338.63, at the time of writing this article. The crypto market is currently experiencing selling pressure, and Bitcoin has now fallen nearly 20% from its all-time high since Donald Trump’s inauguration in January.

The largest crypto has seen a decline of more than 10% over the last seven days. This downward trend follows US President Donald Trump’s aggressive trade policies and EU tariff threats. The crypto market, which was once optimistic post Trump’s election win in November last year, is now facing uncertainty.

5 KEY REASONS BEHIND BITCOIN'S SLUMP

As investors are pulling out money from ETFs and Donald Trump’s threats regarding trade tariffs have made investors nervous, Avinash Shekhar, Co-Founder & CEO, Pi42, explained that ETF outflows and Trump’s EU tariff threats have further pressured the market; BTC could experience a potential drop to $74K.

Moreover, the US Fed remains uncertain about interest rate cuts amid inflationary pressures, making investors cautious about investing in riskier assets like cryptos. Institutional selling and macroeconomic instability have shaken confidence, raising questions about whether the crypto market is facing a temporary correction or the start of a deeper downturn, Shekhar noted.

Further, the hack on the Bybit exchange last week, wherein hackers reportedly stole nearly $1.5 billion worth of Ether, has raised concerns regarding the crypto ecosystem’s security.

Also, investor confidence has taken a hit due to a controversy involving Argentina’s President Javier Milei and memecoins. After promising to introduce Bitcoin if elected, Milei sparked debate by stating his preference for Bitcoin over memecoins like Shiba Inu and Dogelon Mars.

Moreover, the poor performance by memecoins launched by Trump and his wife Melania before the inauguration, has raised doubts regarding his pro-crypto stance.

Shekhar stated that while Bitcoin’s dominance is rising, suggesting some long-term faith remains, the increasing frequency of flash crashes and aggressive liquidations indicates a fragile market. The coming weeks will test whether Bitcoin and crypto can withstand these pressures or if further declines are on the horizon.