Bitcoin Price Plunges 26% Today, Fear Index Nears Bottom
Bitcoin price today, February 28, plunged 26% due to concerns about the economy and Mr. Trump's tax policy.
Bitcoin price today 28/2/2025
Bitcoin fell below $80,000 on late February amid concerns about the economy and Trump's tax policies.
Over the past month, Bitcoin has fallen sharply from its historic peak of $109,000 (January 20, 2025) to below $80,000 (February 28, 2025), a drop of nearly 26%.
The last time Bitcoin traded at this level was on November 11, 2024, when Mr. Trump won the US presidential election. At that time, the market expected that his pro-crypto policies would help Bitcoin grow strongly in 2025. However, the current situation shows the opposite.
Bitcoin's plunge has not only left investors confused but also raised many questions about the future of the world's largest digital currency.
Fear index hits record low
The cryptocurrency market's Fear & Greed Index has dropped to 10 – its lowest level in months, indicating "extreme fear" among investors.
Retail investors are leading the exodus, sending outflows from Bitcoin ETFs in the US to record levels. These funds have seen $2.1 billion in withdrawals in six consecutive days, significantly reducing market liquidity.
The massive capital withdrawal not only caused Bitcoin to fall in price but also dragged other cryptocurrencies such as Ethereum, Binance Coin, Solana... down.
Reasons for Bitcoin's sharp decline
The main reason, according to the study, was the negative market reaction to Mr. Trump’s decision to impose tariffs on imports from Canada and Mexico. The new tariffs are expected to take effect from March 4, 2025.
Immediately after this news, major stock indexes such as the S&P 500 and Nasdaq Composite simultaneously fell at the opening. At the same time, the US dollar index (DXY) increased by 0.6%, ending the downtrend that lasted for more than a week.
Analysts say that when the global economy is unstable, investors tend to seek safe assets such as USD or government bonds instead of Bitcoin - a high-risk asset. This causes the cash flow into Bitcoin to decrease sharply, while the price of USD increases.
Not only that, the cryptocurrency market was also negatively impacted by the attack on the Bybit exchange on February 22, 2025. This attack caused a loss of $1.5 billion in Ethereum value, reducing investor confidence in the market.
According to Anthony Scaramucci, a cryptocurrency investment fund manager in the US, although the market is going through a difficult period, many experts are still optimistic about Bitcoin's long-term prospects. However, in the short term, Bitcoin may continue to fluctuate strongly due to the influence of global economic and political factors.
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods. The issuance, supply, and use of Bitcoin and other similar cryptocurrencies as payment methods are acts that are not in accordance with current laws.
