Bitcoin has dropped, and is now worth under $88,000, which makes this its weakest level since November. A report from 21Shares AG links this downturn to tariff actions on Canada and Mexico, which have reduced investor optimism. Traditional stocks have also fallen, and that mood has spilled into digital tokens.
A decline in consumer attitudes pushed many traders out of volatile assets. Gold has climbed in response, and that often lures money away from coins. The market saw a round of liquidations, as large holders closed positions when futures premiums narrowed.
Part of the sell-off is said to be due to hacking incidents. A breach at Bybit caused a $1.5 billion shortfall, prompting custody worries. The 21Shares AG publication notes a cut in exchange-traded product holdings, hinting that big wallets have stepped aside.
Is This A Good Time To Buy?
Bitcoin is about 12% below its recent high. Experts have shared their views on what this drop means for investors…
Our Experts:
- Marcus Sturdivant Sr., Advisor, Managing Member and CCO, The ABC Squared² DBA All Bases Covered
- Sidney Powell, Co-Founder and CEO, Maple Finance
- Vitaliy Shtyrkin, CPO, B2BINPAY
- Rachel Lin, Co-Founder and CEO, SynFutures
- David Materazzi, CEO, Galileo FX
- Bobby Shell, VP of Marketing, Voltage
- Jeff Le, Managing Principal, 100 Mile Strategies
- Courage Kimber, Strategic Advisor, Global Strategist & Crypto Analyst, KB4UC
- Anton Chashchin, Founder & CEO, N7 Capital
Here’s what they’ve said:
Marcus Sturdivant Sr., Advisor, Managing Member and CCO, The ABC Squared² DBA All Bases Covered
“Markets, business, and investors like stable environments to place their capital. The US economy has gotten off to a rough start as, trade wars, sticky inflation, lower consumer sentiment, geopolitical tension, an FTC not as friendly to M&A as originally thought, and a lack of clear guidance on a Bitcoin Reserve and you have trouble brewing for investors.
“As evidenced by Warren Buffet people are staying in or increasing their positions in cash and gold. The momentum and American Exceptionalism trades have lost steam as international markets outperform the US to start the year.
“The first major blow to Bitcoin was DeepSeek, which saw the token lose nearly as much market cap as Nvidia, but Bitcoin recovered in the next few days to retake 100K. The next blow, one with longer-lasting reverberations, is the initial tariff talks as the coin has struggled to regain the 100K mark since early February.
“This move shows that Bitcoin is a risk-off market mover. When the stock markets started to decline in the futures market, and Bitcoins declined, investors may have taken money from Bitcoin to cover their position in the stock market.
“The crypto market, like the regular market, was taken aback by the initial level, and enacting them had strong implications. This could be a volatile month for crypto, granted if you are investing in crypto for a longer time horizon this will present a buying opportunity, the best of this early year before the month is over.
“Some analysts had lowered expectations to the 70s this month if this trade war plays out. I view Bitcoin like the market right now, not in movement but chances to buy at lower levels than previously thought.
“Also note that the markets climbed back, still negative, from the initial futures outlook when these tariffs were announced Saturday. Yes, everything will be impacted at some level by these tariffs and this will reverberate across the globe. The big questions are for how long will these tariffs last, how hard will this be on consumers, and how long will consumers take these anticipated “hardships”
“The 1.5 Billion dollar Bitcoin heist, with some reports saying North Korea is the hacker, worries investors in coins and Bitcoin has slid down into the low 80s on Feb 26th.
“A few things to help investors feel more secure could be that Crypto, the current administration, did drop suits against Coinbase and Robin Hood in the last few days. The record amounts of coins held by government officials could create a better understanding of how the coins can be regulated and those regulations enforced.
“If you are a long-term investor in Bitcoin as with any asset, you may want to take a look at buying the dip, but know that plenty of bumps are still ahead, Bitcoin is not a moonshot yet too many people believe it is just that. Whatever you choose to put your money into please do research and if needed seek a professional for advice.”
Sidney Powell, Co-Founder and CEO, Maple Finance
“The cyclical nature of BTC’s price movements and its consequent sharp drops are not new to the market. Currently, the reaction of lenders and borrowers (and other market participants) is what matters most. Forced selling and liquidations tend to happen when prices drop significantly and quickly and we see investors panic.
“To manage this, strong frameworks and responsible lending practices make a difference as during these times, investors specifically look out for market liquidity and credit availability. With this volatility, credit markets tighten and access to capital then becomes more selective. Bitcoin’s long term trajectory has always been marked by this volatility and each downturn gives the ecosystem an opportunity to ensure that the infrastructure is in place to manage this.”
Vitaliy Shtyrkin, CPO, B2BINPAY
“The market movements must have been painful for many ordinary investors since the overall mainstream perception was in favour of Bitcoin being en route to new ATH. What happened is still a matter of discussion. First of all, we envisage a transitory macroeconomic environment facing the new U.S. administration’s uncertainties, including the shift towards a tariff-based economy, the unknown outcome of the U.S. gold reserve audit in Fort Knox, and other pro-volatility factors.
“In these circumstances, investors need to be patient and extremely cautious since there is no apparent market trend yet. I don’t think this episode spells more trouble for Bitcoin because of the overwhelming prevalence of supporting factors, including the recently signed by Donald Trump order to launch the first U.S. sovereign wealth fund reportedly focused on Bitcoin and gold. As the gold rally is still in full swing, the current Bitcoin plunge in this respect looks unjustified.
“In terms of Bitcoin dominance, it is currently approaching the 62.50% level, potentially addressing about half of the wick that remained from February 3. Notably, when Bitcoin dominance increases, the broad crypto market often experiences a downturn. As dominance sits at a notably high level right now, it is clear that Bitcoin continues to exert a considerable influence on the broader market landscape, and hence, on investors.”
Rachel Lin, Co-Founder and CEO, SynFutures
“Bitcoin’s price movements are often a reflection of macroeconomic conditions, liquidity cycles, and broader sentiment in the crypto market. While the recent plunge may seem concerning for investors, it’s important to take a long-term perspective. Historically, Bitcoin has demonstrated resilience, bouncing back stronger after significant drawdowns.
“For investors, this downturn presents both challenges and opportunities. Market corrections shake out excess leverage, leading to a healthier foundation for future growth. Smart investors use these moments to reassess their strategies, hedge against volatility, and look for accumulation opportunities. Moreover, as institutional interest in digital assets continues to grow, we’re likely to see Bitcoin play an increasingly prominent role in diversified portfolios, reinforcing its status as a long-term asset.”
David Materazzi, CEO, Galileo FX
“Bitcoin crashes. From an investor’s perspective – if you believe in it, you buy the dip. No hesitation, no second-guessing. If you don’t, the drop just proves you are right. Either way, make your call and own it. No whining and no panic. That’s how real players move.”
Bobby Shell, VP of Marketing, Voltage
“Bitcoin’s price volatility is a natural part of its market cycle and has historically included 20-30% pullbacks on the way to new all-time highs. These corrections help reset leverage, shake out short-term speculation, and create stronger price foundations.
“For long-term investors, dollar-cost averaging (DCA) during these dips has historically delivered amazing returns as Bitcoin continues its supply-driven cycles.
“Volatility is the cost of high performance, and those who understand Bitcoin’s fundamentals see corrections as opportunities, not risks.”
Jeff Le, Managing Principal, 100 Mile Strategies
“On the three-year low of bitcoin, there are two areas to factor:
1. “Underperformance in the stock market has still created macrolevel instability for bitcoin performance. Uncertainty from the Administration on its overall economic policies with tariffs are factors. A looming government shutdown could also be a potential pivot point.
2. “The Bitby hack of $1.4 billion in value likely contributed to cooling in the broader marketplace.”
Courage Kimber, Strategic Advisor, Global Strategist & Crypto Analyst, KB4UC
“The sudden plunge in Bitcoin price means a loss of investor confidence and a significant market correction. Likely due to fear and uncertainty around the Trumps tariffs.”
“Investors are also feeling the fallout from the $1.5,billion dollar Bybit crypto exchange hack so there are tons of liquidations of futures with the price of Bitcoin falling.”
“Beyond futures traders having to liquidate positions due to margin calls due Bitcoins declining price this is also the liquidations for Bitcoin and Ethereum Futures expiring on February 28th.”
Anton Chashchin, Founder & CEO, N7 Capital
“Investors should be divided into two categories: long-term investors and short-term investors.
For long-term investors, Bitcoin’s decline is nothing more than an opportunity to accumulate more of the asset. If long-term investors have already completed their purchases and hold the desired amount, the current drop poses no real risk to them. Moreover, investors who acquired the majority of their Bitcoin holdings approximately a year ago are still in profit, not to mention those who bought Bitcoin two or five years ago. Even if a long-term investor faces temporary losses, the essence of long-term investing lies in waiting for a favourable selling point.
“It is also important to remember that the current environment is particularly favourable for the market. With an increasing number of crypto-friendly figures emerging in the U.S. government, confidence is rising — not only among domestic investors but also internationally. This growing acceptance encourages other countries to view Bitcoin as a reserve asset and invest in it.
“For short-term investors, the circumstances are somewhat different. Since they cannot afford to wait for extended periods for various reasons, Bitcoin’s current performance may give them cause for concern. This situation is ambiguous, as Bitcoin’s price remains relatively high compared to the rest of the market (altcoins).
“For short-term investors who cannot hold their positions for long, this downturn could be substantial. It is also essential to understand that the core goal of short-term investing is quick profit. If a short-term investor experiences losses, they are unlikely to hold onto the asset for an extended period.
“Regarding recent statements, the phrase “a global market halt” is an overstatement of the current situation; there are too many positive developments in the political sphere supporting the overall growth of the crypto market. Looking at the charts, many altcoins are already so low that it is difficult to imagine them falling much further.
“Additionally, the Fear and Greed Index currently stands at 21, indicating “Extreme Fear.” This is an exceptionally low value, suggesting that most market participants expect further declines. Historically, when the market reaches such extreme fear or greed levels, a reversal often follows. Based on this pattern, a market turnaround could be imminent.”
