Since 2022, President Trump’s trade tariffs have hit bitcoin to an all-time low.
Nigeria News Nalin Bitcoin entered a correction phase, falling below $80,000 and losing 37% of its $109K peak, which was achieved at Trump’s inauguration on January 20.
The recent bad performance of assets has turned the entire cryptocurrency market into red, eliminating 2025 earnings.
The Crypto Fear and Greed Index recently hit a 10-point “Extreme Fear” score, the lowest level in two years as market sentiment plummeted.
Trade war turns Bitcoin into a red sea
A major factor in the downturn is the escalation of tensions between the United States and some of its most important trading partners, such as China, Canada and Mexico.
President Donald Trump declared new tariffs on goods in the three countries as the cause of the deadlock. Additionally, the president threatened to impose a 25% tax on EU import taxes and accused the group of people of “screwing” the United States.
President Trump also revealed that he will start on March 4 with a general tariff on 10% of Chinese imports and impose tariffs on Canada and Mexico.
Pioneer crypto assets fell below the simple moving average of 200 days, resulting in a 16% loss per week. Since November 10, the price has temporarily fallen below the $80,000 threshold because demand for the U.S. dollar has increased due to trade tariffs.
Glass Festival data shows that over the past three days, short-term holders of Bitcoin have realized the total losses totaled $2.16 billion, a major reason for the recent sell-off. Investors who bought Bitcoin last week suffered the biggest losses.
The losses for this group of holders was $927 million, accounting for 42.85% of the losses caused by young accomplices. Similarly, holders who hold stocks for one week to one month experience $678 million in losses. Those who purchased within a month to a year lost $257 million and those who bought within a day lost $322 million.
Less interest in Bitcoin live ETFs
In addition, the large number of withdrawals puts the US-based Bitcoin ETF in a serious situation.
According to Coinglass, 11 Bitcoin funds experienced a net outflow of $938 million, the sixth consecutive trading day.
The Fidelity Wise Origin Bitcoin Fund (FBTC) was the biggest loser of the day, with a total withdrawal of $344.7 million, setting a new record of ETF outflows. After the ETF’s Exodus, the cryptocurrency market collapsed and put Bitcoin into a bear market.
BlackRock’s iShares Bitcoin Trust (IBIT) took second place with a $164.04 million withdrawal.
Grayscale’s two funds had a net loss of $151.9 million, compared with the $85.8 million of Bitcoin Mini Trust ETF, its Grayscale Bitcoin Trust (GBTC) had a net loss of $66.1 million. Bitcoin ETF (BITB) lost $88.3 million.
Bybit Hack weakens buying appetite
A $1.49 billion hacking attack on cryptocurrency exchange BYBIT on Friday exacerbated the market correction for Bitcoin.
Bitcoin fell from nearly $100,000 to $97,370 after the hack was revealed. Pioneer cryptocurrency assets earlier
Extreme fear of the crypto market
Bitcoin continues to follow the merger pattern observed earlier this week.
- But President Donald Trump’s rhetoric on trade restrictions in Canada and Mexico has triggered a new downward trend. After a month of pause, the president announced that import responsibilities of both countries will be restored in the next week.
- Extreme investor fears indicate that the Bitcoin Fear and Greed Index (the lowest level since June 2022) has fallen to 10. The market sentiment index has been considered neutral from 50 to 10 so far, indicating extreme fear.
- Extreme fear often indicates that investors are overly concerned about market events and indicate buying opportunities.
Market indicators suggest that flagship crypto assets could be as low as $70,000 before stabilization. Bitmex co-founder Arthur Hayes warned that extreme fear is often ahead of rebounds.
