The cryptocurrency market is reeling as Bitcoin (BTC) hit an over three-month low on Friday, February 28, 2025, trading at approximately $78,782 during Asian market hours. This marks a sharp 5.5% drop in a single day and a staggering 25% decline from its all-time high in mid-December 2024. What started as a post-election rally following U.S. President Donald Trump’s victory in November has now turned into a week-long rout for the world’s leading digital asset. So, what’s behind this Bitcoin price crash, and should investors still hold hope for a recovery? Let’s dive into the details.
From Trump Rally to Market Retreat
Bitcoin enjoyed a meteoric rise after Trump’s election win, fueled by his campaign promises to position the U.S. as a global crypto hub. Branded as a pro-crypto candidate, Trump’s victory sparked optimism, driving BTC prices to new heights. However, that momentum has fizzled out. Analysts point to a mix of macroeconomic pressures and geopolitical uncertainties as key culprits. Weakness in global equity markets, ambiguity around Trump’s tariff policies, and ongoing conflicts like Russia-Ukraine and Israel-Gaza have spooked investors, prompting a flight from “risk-on” assets like Bitcoin.
Adding fuel to the fire, the crypto world was rocked by news of a $1.5 billion hack at Bybit, one of the largest cryptocurrency exchanges. Described as the biggest crypto heist in history, this incident has further soured investor sentiment. Jeff Mei, COO of crypto exchange BTSE, told CNBC, “It seems that the market has become volatile in reaction to the Bybit incident.” He also highlighted broader concerns, including persistent inflation fears and fading hopes for aggressive U.S. Federal Reserve rate cuts, as additional drags on Bitcoin’s price.
Trump’s Crypto Ambitions: A Silver Lining?
Despite the gloom, Bitcoin bulls aren’t throwing in the towel just yet. The Trump administration has already taken bold steps to embrace cryptocurrencies. An executive order signed by the President aims to advance digital assets in the U.S., including plans for a national crypto stockpile. Task forces and a newly appointed “crypto czar” are also working to establish a clear regulatory framework—a move that could bring much-needed stability to the volatile market.
Geoffrey Kendrick, head of digital assets research at Standard Chartered, remains optimistic. In a recent interview on CNBC’s Squawk Box Europe, Kendrick predicted Bitcoin could soar past $200,000 in 2025 and even reach $500,000 before Trump’s term ends. He attributes this bullish outlook to growing institutional adoption and regulatory clarity, which could reduce Bitcoin’s infamous volatility over time.
What’s Next for Bitcoin in 2025?
For now, the Bitcoin market remains a rollercoaster. The combination of external shocks—like the Bybit hack—and macroeconomic uncertainty has triggered this latest downturn. However, Trump’s pro-crypto agenda and industry experts’ forecasts suggest that a potential rebound could be on the horizon. Investors eagerly await further policy announcements that could shape the future of digital assets in the U.S. and beyond.
Will Bitcoin bounce back to its December highs, or is this the start of a deeper correction? Stay tuned as we track the latest crypto market trends, regulatory updates, and price predictions.
