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#Bitcoin Plummets 225 Reasons for the Crash
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Yesterday (2/25), BTC flash crashed to 87,000, with over 1.5 billion liquidated across the network! There are five main reasons:
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1️⃣
Regulatory Black Swan
South Dakota vetoed the Bitcoin reserve bill, combined with EU sanctions on Russian cryptocurrency exchanges, resulting in policy uncertainty that severely undermined market confidence. Expectations for institutional capital inflow were shattered, leading to intensified panic selling.
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Largest Hacking Incident in History
Bybit was hacked for 1.5 billion in ETH, with dual impacts from hacker selling pressure and a crisis of trust in exchanges. Security vulnerabilities exposed fatal flaws in the industry, causing funds to accelerate their exit.
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Trump Tariff Shock
A 25% tariff plan on Mexico and Canada has heightened inflation expectations, with US Treasury yields soaring to 4.5%. Risk assets were sold off, with BTC being the hardest hit.
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Leverage Bubble Burst
High leverage contracts (some over 100x) triggered a chain liquidation, with 950 million in forced liquidations triggering a death spiral. The funding rate for perpetual contracts turned negative, with shorts dominating the market.
5️⃣
Sudden Change in Institutional Behavior
MicroStrategy changed to convertible bonds, with a 75% drop in purchasing speed. The logic of "institutional support" has collapsed, leading to the disintegration of liquidity support.
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The current greed index has plummeted to 25 (extreme fear), and key technical support has been broken. Pay attention to the miner shutdown price of 78,000!
