Bitcoin Plunges Below $89,000 Amid Market Turmoil

Bitcoin experienced a sharp decline on Tuesday, dropping below $90,000 as a global tech sell-off rattled financial markets. The cryptocurrency fell 7.25% to $87,169.76 earlier in the day, marking its lowest level since November, before slipping further to $86,000, down over 8.5%. As of February 25, 2025, Bitcoin is trading at $88,917, reflecting a continued downward trend.

The broader crypto market mirrored Bitcoin’s downturn. Ethereum plunged 9.8% to $3,150, while other major altcoins, including Solana, XRP, and Dogecoin, suffered even steeper losses.

Factors Driving the Decline

The slump in Bitcoin coincided with a pullback in US equities. The Nasdaq Composite lost over 1%, driven by investor concerns surrounding Nvidia’s upcoming financial results, while the S&P 500 extended its losing streak for a third straight session.

Adding to market jitters, former US President Donald Trump reaffirmed plans to impose tariffs on Canadian and Mexican imports, further dampening sentiment.

Meanwhile, a security breach at Bybit last week saw over $1.4 billion in Ethereum and stETH withdrawn, spooking traders.

With markets closely watching the Federal Reserve’s next policy moves, analysts believe Bitcoin remains in a volatile trading range and could retest the $89,000 level in the coming days.