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The leading cryptocurrency, Bitcoin 
$105,623, experienced a sharp decline on February 25, falling to a level of $86,800. This drop triggered panic in the cryptocurrency market, resulting in a sentiment of “Extreme Fear.” According to CryptoQuant data, short-term investors sent 37,400 BTC to exchanges to avoid losses. What caused this wave of selling?
Why Did Bitcoin and Altcoins Drop?
The significant fall in Bitcoin also negatively impacted the altcoin market. Ethereum (ETH) 
$2,423 and XRP lost 10% in value, while Binance Coin (BNB) declined by 4%. Solana 
$146 (SOL) was among the hardest-hit altcoins, dropping by 12% and struggling to maintain the $140 level. Coinglass data indicates that positions worth $1.5 billion were liquidated in the last 24 hours, with $1.38 billion coming from long positions.
The new customs tariffs imposed by U.S. President Donald Trump on Canada and Mexico are cited as reasons for this selling wave in the cryptocurrency market. According to QCP Capital, Trump’s economic policies have pushed investors to avoid risks, resulting in a negative atmosphere in the markets.
Could Bitcoin Drop Further?
There is notable weakness in demand for Bitcoin. CryptoQuant data shows that demand for Bitcoin has entered negative territory for the first time since October 2023. There has been a significant decline in demand, particularly since December.
Bitcoin’s futures return (CME basis yield) remains low. Market experts like Arthur Hayes warn that if these returns continue to decrease, large funds may continue to sell BTC.
Despite a 20% decline at the $86,000 level, the market structure indicating a rise has not changed. However, if the price closes below this level on a daily basis, the bullish market structure could be compromised, leading to deeper selling pressure.
