Bitcoin price plummets 26% today, fear index nears bottom.
Bitcoin prices plummeted 26% today, February 28th, due to concerns about the economy and President Trump's tax policies.
Bitcoin price today, February 28, 2025
At the end of February, Bitcoin fell below $80,000 due to concerns about the economy and Trump's tax policies.
Over the past month, Bitcoin has plummeted from its all-time high of $109,000 (January 20, 2025) to below $80,000 (February 28, 2025), representing a drop of nearly 26%.
The last time Bitcoin traded at this level was on November 11, 2024, when Trump gained an advantage in the US presidential election. At that time, the market expected that his pro-cryptocurrency policies would lead to strong Bitcoin growth in 2025. However, current developments suggest the opposite.
The plunge in Bitcoin's price has not only caused panic among investors 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 fallen to 10 – its lowest level in months, indicating extreme investor fear.
Retail investors are leading the wave of withdrawals, causing record outflows from spot Bitcoin ETFs in the US. Over six consecutive days, these funds have seen outflows totaling $2.1 billion, significantly reducing market liquidity.
The massive outflow of capital not only caused Bitcoin's price to fall but also dragged down other cryptocurrencies like Ethereum, Binance Coin, Solana, and others.
Reasons for Bitcoin's sharp drop
According to our findings, the main reason is the negative market reaction to President Trump's decision to impose tariffs on imports from Canada and Mexico. The new tariffs are expected to take effect on March 4, 2025.
Immediately following this news, major stock indices such as the S&P 500 and Nasdaq Composite fell simultaneously at the opening. At the same time, the US dollar index (DXY) rose 0.6%, ending a downward trend that had lasted for more than a week.
Analysts suggest that, amidst global economic instability, investors tend to seek safe-haven assets like the USD or government bonds instead of Bitcoin – a high-risk asset. This has led to a sharp decline in Bitcoin inflows, while the value of the USD has risen.
Furthermore, the cryptocurrency market suffered additional negative impacts from the Bybit exchange hack on February 22, 2025. This attack resulted in a loss of $1.5 billion worth of Ethereum, further eroding investor confidence in the market.
According to Anthony Scaramucci, a cryptocurrency fund manager in the US, despite the current market challenges, many experts remain optimistic about Bitcoin's long-term prospects. However, in the short term, Bitcoin may continue to experience significant volatility due to the influence of global economic and political factors.
In Vietnam, representatives of the State Bank of Vietnam have repeatedly stated that Bitcoin and other similar cryptocurrencies are not legal tender or a legitimate method of payment. The issuance, supply, and use of Bitcoin and similar cryptocurrencies as a means of payment are contrary to current laws.
