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CyrilXBT|Feb 28, 2025 16:53
🚨Bitcoin is crashing! What's happening?
A breakdown of why BTC is dumping right now & what comes next 👇🧵
1/ Bitcoin just dropped below 80,000, marking a 25% decline from its January high of 109,000.
Panic is spreading
let’s break down why this is happening and whether it’s a buying opportunity or a sign of more pain ahead.
2/ Macroeconomic Chaos 🏦
Trump just announced new tariffs on Canada, Mexico, and China.
Markets hate uncertainty, and investors fear this could:
- Slow global economic growth
- Increase inflation
- Reduce risk appetite for assets like BTC
3/ Massive Exchange Hack
Bybit, a major crypto exchange, was just hacked for 1.5 billion making it one of the biggest hacks in history.
This has shattered investor confidence in centralized platforms, leading to more sell-offs.
4/ Spot Bitcoin ETF Outflows 📉
Institutional investors are pulling money from spot BTC ETFs—over 1.1 billion withdrawn recently.
Less institutional demand = less price support = more downward pressure.
5/ Leverage Wipeout
Many traders were over-leveraged, expecting BTC to pump higher.
With the price crash, liquidations are hitting hard, creating a cascade of forced selling and more downside momentum.
7/ What’s Next for BTC? 🚀 or 📉
📌 If macro conditions improve, BTC could stabilize & recover.
📌 If ETF outflows continue & fear spreads, we could see further downside.
here are my thoughts as to why the market has been tanking hard.
hopefully we find the bottom soon enough
What do you think? Buying the dip or staying cautious?
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