Crypto Market’s Bloody Week

Lara Hanyaloglu
Feb 28
2 min read

This past week has been brutal for crypto traders. Bitcoin and other major cryptocurrencies have taken a beating, with billions wiped off the market. If you thought the crypto rally was here to stay, this latest crash is a harsh reminder that volatility is still king.

So, what’s causing this meltdown?

Bitcoin’s Worst Month in Years

BTC has been in freefall, dropping as low as $78,259 after trading between $78,259 and $87,078 in the past 24 hours. As of this morning, BTC is sitting at $80,362, marking a 6.76% drop. To make matters worse, Bitcoin has now recorded its worst monthly decline since June 2022, with a 22% drop in February and an 18% plunge this week alone.

What’s Causing the Crypto Crash?

1. Trump’s Trade War Sparks Fear

President Donald Trump recently announced new tariffs on Mexican, Canadian, and Chinese imports set to kick in on March 4. These include:

A 25% tariff on Mexican and Canadian goods
An additional 10% tariff on Chinese imports

These aggressive trade policies have sent shockwaves across global markets, with investors pulling out of risky assets like crypto.

2. The Trump Crypto Hype Is Fading

Crypto traders were initially optimistic about Trump’s return, hoping for pro-crypto policies. But with no concrete moves to support digital assets, that hype has quickly faded, and so has market confidence.

3. A $1.5 Billion Hack Shakes the Market

If market uncertainty wasn’t bad enough, the Bybit crypto exchange was hit with a $1.5 billion hack this week. Security concerns have resurfaced, making investors even more nervous about holding funds on exchanges.