Bitcoin’s blistering rally took a sharp turn on Tuesday, dipping below the $90,000 mark as investors scrambled amid renewed economic uncertainty. The sell-off wiped out more than $230 billion in market capitalization, fueling concerns over broader instability in digital assets.
Market Jitters Trigger a Crypto Sell-Off
A wave of selling pressure gripped the cryptocurrency market following U.S. President Donald Trump’s announcement of upcoming tariffs on Mexico and Canada. The looming trade policies, set to take effect on March 4, have spurred fears of increased economic friction, prompting risk-averse investors to reduce exposure to volatile assets.
Bitcoin, which had previously surged to an all-time high of $107,791, saw its momentum falter as sentiment soured. The leading cryptocurrency tumbled 8% in just 24 hours, marking one of its sharpest one-day declines this year.
“This is a clear case of risk-off sentiment in the market,” said Matthew Sigel, head of digital assets research at VanEck. “Bitcoin and other digital assets are particularly vulnerable when broader economic uncertainty takes hold.”
Altcoins Take a Beating
The downturn wasn’t limited to Bitcoin. Several altcoins suffered steeper declines, with Ether, Solana, and Dogecoin leading the losses. Investors, still reeling from the fallout of last week’s record-breaking crypto hack, showed little appetite for risky trades.
- Ether, the second-largest cryptocurrency by market cap, plunged over 10% in the past 48 hours.
- Solana tumbled approximately 15% in the same period.
- Dogecoin dropped about 13%, extending its weekly losses.
“Crypto is just weak and has been for eight weeks,” said Jeff Dorman, chief investment officer at Arca. “Equities, fixed income, and gold have completely shrugged off any data points that have been used to explain weakness in crypto. Only crypto is going lower. And that’s largely due to poor sentiment, exploitation from various meme coin failures, and lack of capital to support new token launches.”
Institutional Players Step In
Despite the downturn, institutional interest in Bitcoin remains strong. On Monday, business intelligence firm MicroStrategy announced a massive $2 billion Bitcoin investment, bolstering confidence among long-term holders. The firm, which has become synonymous with corporate Bitcoin adoption, now holds over 205,000 BTC.
Market analysts noted that MicroStrategy’s continued accumulation could provide a stabilizing effect, preventing Bitcoin from slipping even further.
What’s Next for Bitcoin?
With volatility gripping the market, traders are eyeing key technical levels for Bitcoin. Some analysts predict that a sustained break below $90,000 could trigger further downside, while others believe that institutional demand will help cushion the fall.
A look at Bitcoin’s recent price movements:
| Date | Bitcoin Price ($) | % Change |
|---|---|---|
| Feb 18 | 103,000 | +4.2% |
| Feb 21 | 99,500 | -3.4% |
| Feb 23 | 94,800 | -4.7% |
| Feb 25 | 89,900 | -5.1% |
As of 8:26 a.m. Tuesday in Hong Kong, Bitcoin had stabilized around $91,902, recovering slightly from its intraday lows. Whether this signals a temporary reprieve or the start of a deeper correction remains to be seen.
“Traders are watching closely,” said Ava Jones, a senior crypto analyst at Glassnode. “If Bitcoin fails to hold above $90,000, we could see another leg down, potentially testing support near $85,000.”
While Bitcoin’s future trajectory remains uncertain, one thing is clear: the crypto market is in for another turbulent ride.
