Significant events in the crypto market (end of February and beginning of March 2025):

Significant price drop and market volatility:

The market experienced a significant decline, as Bitcoin fell below $80,000, marking a 25% drop from its historical peak. The total market capitalization of cryptocurrencies also shrank to about $2.81 trillion by March 1, 2025, after previously being higher. This was termed by some analysts as the 'Trump-dump,' linked to President Trump's tariff threats and the broader withdrawal from risk assets.

Trump's tariff policies and their impact:

On February 28, Trump announced that he will impose a 25% tariff on Canada and Mexico, effective March 4, 2025. This raised concerns among investors, who began to withdraw capital from risk assets, including cryptocurrencies, further fueling the price decline.

The White House is hosting the first Crypto Summit:

On March 1, it was announced that President Trump will host the first Crypto Summit at the White House on March 7, 2025. The event will bring together industry leaders to discuss regulations, stablecoins, and legislation for Bitcoin reserves. This shows the administration's continued pro-crypto stance despite short-term market turbulence.

Ethereum Foundation with new initiatives:

Ethereum Foundation announced new leaders and allocated $2 million for academic research related to Ethereum, with a proposal deadline of March 16, 2025. This indicates a focus on long-term improvements and innovations in the Ethereum ecosystem.

Scalability issues of blockchain networks:

In January 2025, the launch of a meme coin associated with the president led to network congestion on Solana, highlighting scalability issues of major blockchain networks (Layer 1). This was noted as a broader issue, especially with the increasing use of AI agents that add additional pressure to the blockchain space.

Major financial institutions entering crypto:

In addition to those mentioned on the list, BlackRock, Citadel, State Street, Citi, and Bank of America, other major players are also making moves. For example, the Abu Dhabi Sovereign Wealth Fund has accumulated $436 million in BlackRock's Bitcoin ETF, and Wisconsin's pension fund holds $321 million in Bitcoin ETF. This shows growing institutional interest despite the market decline.

$1.5 billion theft from Bybit:

The crypto exchange Bybit suffered the largest hack in its history, with $1.5 billion stolen. Bybit offered financial rewards for those who help trace the stolen funds, and blockchain investigators are already working on the case.

Market forecasts for March 2025:

Analysts predict that the decline of Bitcoin may continue until April, with the price possibly falling to $70,000 before recovering. However, historically, March has been a positive month for the crypto market, with Bitcoin and Ethereum averaging a 17% increase over the last four years. This year, however, macroeconomic factors such as rising inflation and a strengthening dollar (DXY) may change the trend.

AI and blockchain integration:

There is a 73% yearly drop in the market capitalization of AI agent tokens, raising questions about their long-term viability. However, AI agents are becoming increasingly important in crypto, processing vast amounts of data and executing trades autonomously. Their market capitalization reached $14 billion at the beginning of 2025, indicating rapid growth but also volatility.

Regulatory movements outside the U.S.:

In Iran, the government has intensified its criticism of cryptocurrencies amid an economic crisis and Western sanctions, but at the same time is considering the use of crypto for international trade to circumvent sanctions.

In the European Union, the European Commission is investigating whether the rules for crypto assets sufficiently protect the rights of investors in stablecoins, which could lead to new regulations.

How does this fit into the bigger picture?

Despite the optimistic news shared, the market is at a tense moment. Institutional interest (BlackRock, Abu Dhabi, CME with futures for Solana) and regulatory clarity (SEC withdrawing lawsuits against Coinbase, Uniswap, etc.) are strong positive signals for long-term growth. However, short-term macroeconomic challenges—such as Trump's tariffs, rising inflation, and waning interest from retail investors—create volatility. Events like the Crypto Summit at the White House on March 7 may provide more clarity and support a recovery, but for now, the market remains on the brink between decline and consolidation.