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Why Crypto Prices Are Falling

Bitcoin drops below $88,000 as the whole crypto market falls. Experts explain why prices are dropping and what could happen next.

Jordan Avery by Jordan Avery
February 25, 2025
in Featured, News
Reading Time: 4 mins read
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Crypto Market Takes a Big Hit

The crypto market is crashing, and Bitcoin is leading the fall. The price of Bitcoin (BTC) dropped below $88,000, hitting its lowest point in three months. The entire crypto market lost 8% in value, shrinking from $3.31 trillion to $3.09 trillion. Many altcoins (other cryptocurrencies) have dropped even more, falling by 15% or more in the last week.

Mark Cudmore, a financial expert, explained on Bloomberg TV:

“The crypto destruction here is mainly outside of Bitcoin, Bitcoin is a relative outperformer.”

Even though Bitcoin fell hard, experts warn it could drop even further. Some analysts say it might test a support level of $70,000 if the sell-off continues.

Why Are Crypto Prices Dropping?

Several things are making crypto prices fall fast. Here are the biggest reasons behind the crash:

  1. Trump’s Tariffs Are Hurting Markets

The main reason for the crypto market’s drop is President Donald Trump’s new tariffs.

Recently, Trump confirmed higher taxes (tariffs) on goods coming from Canada, Mexico, and China. These taxes make imports more expensive and increase inflation fears. When inflation rises, investors become nervous and sell risky assets like Bitcoin.

JUST IN: 🇺🇸 President Trump says 25% tariffs on Canada and Mexico will go forward.

“It will be very good for our country. Our country will be extremely liquid and rich again.”

pic.twitter.com/dVwBylwFbl

— Watcher.Guru (@WatcherGuru) February 24, 2025

This isn’t the first time Trump’s tariffs have caused problems for Bitcoin. Three weeks ago, Trump announced similar tariffs, and Bitcoin fell from $105,000 to $91,441. Now that Trump has confirmed these new taxes, the market is reacting badly again.

  1. Bitcoin Is Moving Like the Stock Market

Bitcoin used to move differently than traditional financial markets. But now it follows them closely.

  • The S&P 500 (a stock market index) fell 2.3% in the last five days.
  • The Nasdaq Composite (another stock index) dropped 4%.
  • Tensions between the U.S. and China over semiconductor exports (like Nvidia chips) are making investors nervous.

When big stock markets go down, Bitcoin often follows. Right now, that is exactly what is happening.

  1. Bitcoin’s Volatility Has Collapsed

Bitcoin is known for big price swings. But recently, its price has been unusually stable.

Mark Cudmore explained:

“There was a collapse in volatility recently,” said Cudmore. “There was an early warning sign that the next major collapse in Bitcoin was likely imminent.”

A long period of low price movement can mean a big jump or a big drop is coming soon. Right now, Bitcoin is struggling, which could lead to another major drop.

Will Bitcoin Keep Falling?

Experts don’t agree on what will happen next.

  • Some believe Bitcoin will recover as inflation fears settle down.
  • Others think Bitcoin will drop to $70,000 if investors keep selling.
  • The crypto market needs stability before big buyers return.

For now, crypto traders should stay cautious. Bitcoin has fallen hard, but it has bounced back before.

Final Thoughts: What’s Next for Crypto?

The crypto market is struggling because of:

  • Trump’s new tariffs on Canada, Mexico, and China.
  • The stock market is falling, pulling Bitcoin down with it.
  • Bitcoin’s low volatility, makes prices less stable.

If things don’t improve soon, Bitcoin could drop to $70,000. However, if confidence returns, Bitcoin might bounce back like it has in the past. For now, investors should stay alert and watch how the market reacts to upcoming economic news.

 

Tags: bitcoinBitcoin price dropBitcoin support levelBTC Price Predictioncrypto crashcrypto market fallCrypto TradingCryptocurrency NewsFinancial marketsInflationInvestor ConfidenceMarket volatilitystock marketTrump crypto impactTrump tariffs
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