On February 25, 2025, Bitcoin experienced a sharp decline due to the following reasons:
- Changes in regulatory expectations: On February 24, lawmakers in South Dakota voted to postpone the HB1202 bill that would allow the state to invest in Bitcoin until the 41st day of the legislative session. Since the session does not exceed 40 days, this effectively killed the bill and dampened market optimism towards cryptocurrencies.
- Hacker attacks trigger a crisis of trust: On February 21, the well-known cryptocurrency exchange Bybit was hacked, resulting in the theft of virtual currency assets worth over $1.4 billion. This marks the largest recorded single theft in cryptocurrency history, raising significant concerns and worries about the security of centralized exchanges, leading investors to sell off Bitcoin and other cryptocurrencies in large quantities.
- Increased macroeconomic uncertainty: Trump announced potential tariffs on Canada and Mexico, causing panic over "Trade War 2.0", with funds flowing into safe-haven assets like the yen, while risk assets like Bitcoin faced sell-offs. Additionally, market expectations for a Fed interest rate hike have risen, and high inflation expectations have led investors to prefer conservative investments, putting further pressure on Bitcoin prices.
- Demand for market self-adjustment: Bitcoin consolidated in the $91,000-$102,000 range for about three months, lacking upward momentum. Moreover, last week saw a net outflow of funds from Bitcoin spot ETFs totaling $553 million, indicating a shift in market sentiment towards Bitcoin, which also contributed to this price correction. #加密市场回调 #Infini遭攻击 #bybit被盗
