In recent days, the cryptocurrency market has seen a sharp decline in Bitcoin. From a historical peak of 109,000 USD on January 20, 2025, Bitcoin prices fell below 80,000 USD on February 28, 2025, marking a decrease of nearly 26% in more than a month.
The last time Bitcoin traded at this level was on November 11, 2024, when Mr. Trump won an advantage in the US presidential election, amid expectations that his cryptocurrency-backed policies will boost Bitcoin's growth in 2025.
This decline not only causes confusion for investors but also raises many questions about the future of the world's largest digital currency.
According to the reporter's research, the main reason is that the market reacted negatively to President Trump's tough decision to impose tariffs on imports from Canada and Mexico. The new tax rates are expected to take effect from March 4, 2025.
The news was immediately put pressure on major stock indexes such as the S&P 500 and Nasdaq composite, both of which fell as soon as they opened. At the same time, the US dollar index (DXY) increased by 0.6%, reversing a downward trend that has lasted for more than a week.
According to analysts, as major economies enter a period of uncertainty, investors tend to seek safer assets such as the US dollar or government bonds instead of continuing to hold Bitcoin, an asset considered high-risk. This caused the cash flow into Bitcoin to decrease sharply, while the price of the US dollar increased.
In addition, the attack on the cryptocurrency exchange Bybit on February 22, 2025, leading to the loss of 1.5 billion USD in Ethereum value, also contributed to reducing investors' confidence in the cryptocurrency market.
The cryptocurrency market's Fear & Greed Index has fallen to 10 - the lowest level in many months, reflecting investors' "extreme fear" psychology.
Notably, retail investors are leading the wave of withdrawals, contributing to the record of capital flow from Bitcoin ETFs delivered immediately in the US. These funds have gone through 6 consecutive days of withdrawal, with a total value of up to 2.1 billion USD. This massive divestment has significantly reduced liquidity in the market.
The withdrawal of money from the cryptocurrency market not only caused Bitcoin to depreciate but also caused most other digital currencies such as Ethereum, Binance Coin, Solana... to plummet.
According to Anthony scaramucci - a cryptocurrency investment fund manager in the US, despite going through a difficult period, many experts are still optimistic about the long-term prospects of Bitcoin. However, in the short term, Bitcoin may continue to fluctuate 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 a means of payment is an act that is not in accordance with current law.
