Bitcoin falls below $78,250, the lowest since November

[HaiderAfan]

A number of significant issues that have affected investor confidence and market dynamics are responsible for Bitcoin's current slide to its lowest level since November 2024 the price of Bitcoin dropped precipitously as of 28 February 2025 reaching lows of about $78250 a considerable decline from its peak of more than $109000 in January 2025. This drop is a result of both particular events that have affected the cryptocurrency market and more general economic uncertainty.

Economic Uncertainty and Regular Concerns:

Investor nervousness has been exacerbated by worries about a tech boom stringent trade regulations and a possible worldwide recession. Investors are especially wary of riskier assets like cryptocurrencies due to the U.S. Federal Reserve's uncertainties on interest rate decreases in the face of inflationary pressures.

The market has been further strained by President Donald Trump's tough trade policies, which include threats of tariffs against the EU. Investor enthusiasm for cryptocurrencies has also been tempered by Trump's pro crypto policies slower than-expected implementation.

Security issues within the cryptocurrency ecosystem have been brought to light by a major hack of the Bybit cryptocurrency exchange that resulted in the theft of about $1.5 billion in Ether. This incident has increased investor concerns regarding the security of digital assets.

With steep drops and rebounds the price of bitcoin has been extremely erratic. Most recently, it dropped below its 200-day Exponential Moving Average EMA a crucial indication of a bearish trend. Increased liquidations and sell-offs as a result of this instability have further lowered prices.

In addition to casting doubt on pro-crypto attitude of Trump the underwhelming performance of meme currencies endorsed by him and other political leaders has also contributed to pessimism regarding the stability of the cryptocurrency industry.

Due in part to regulatory uncertainty and macroeconomic instability institutional investors have begun to sell off their Bitcoin holdings which has exacerbated the downward trend in the price of the cryptocurrency.