 "Bitcoin’s volatility and lack of intrinsic value have been long-standing criticisms. Image Credit: Reuters")
Bitcoin prices dropped below $92,000 on Tuesday (February 25), nearing their lowest levels since November, as a risk-off sentiment gripped global markets.
In the past 24 hours, reportedly over $100 billion has been wiped from the crypto market due to this tumble in value.
US stocks also extended their declines, driven by concerns over the economic outlook and heightened geopolitical tensions.
The selloff in risk assets began last week, spurred by worries over the US economy, according to TradingView.
The slide was exacerbated by President Donald Trump’s escalating tariff threats and the Federal Reserve’s hawkish stance on interest rates.
Investor sentiment may have been further dampened by a reported hack targeting cryptocurrency exchange ByBit.
The Dubai-based platform said hackers breached its Ethereum cold wallet, an offline system used for securely storing cryptocurrencies and encryption keys. The attackers allegedly stole tokens, mostly in ether, transferring them to multiple wallets and liquidating them through various platforms.
The graph is a sharp downward one for Bitcoin, which recently hit an all-time high of nearly $110,000 , supported by Trump’s pro-crypto agenda. In an executive order in late January, Trump had reiterated his pledge to establish the United States as the “crypto capital of the planet” and promised “regulatory clarity and certainty” to encourage blockchain and digital asset innovation.
Major Bitcoin acquisition
MicroStrategy, led by executive chairman Michael Saylor, added 20,365 Bitcoin worth nearly $2 billion to its treasury, bringing its total Bitcoin holdings to 499,096, valued at approximately $33.1 billion, according to data from TradingView.
Saylor is well-known in the cryptocurrency investment world. The man had once said, “Every Bitcoin you don’t buy is gonna cost you $13 million.”
The latest purchase was financed through a convertible bond sale last week as part of the company’s broader Bitcoin accumulation strategy.
Impact Shorts
More ShortsGlobal crypto developments
Globally, regulatory developments continue to shape the crypto landscape. Officials in Malaysia and Thailand are weighing potential policy changes, while Japan, South Korea, and Cambodia have taken incremental steps toward broader adoption, according to Bloomberg News.
Meanwhile, Hong Kong, Singapore, and Dubai have emerged as leading crypto hubs, strengthening their positions amid skepticism from US regulators under President Joe Biden’s administration.