Islamabad, Feb 28: Bitcoin plunged to a new low for 2025 on Thursday, briefly dropping over 6% to $79,500 before rebounding slightly to $80,100. The decline was fueled by growing market uncertainty and a broader risk-off sentiment that weighed heavily on the cryptocurrency sector. Ethereum also faced a sharp downturn, falling 8% to $2,150, marking its lowest level in over a year.
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Currently, Bitcoin is trading 26.37% below its record high of $108,790, which was reached on January 20, 2025. The latest slump takes it back to levels last seen in November 2024. The broader crypto market also experienced massive liquidations, exceeding $220 million within an hour, with Bitcoin long positions making up nearly half of that total.
Market analysts are divided on the reasons behind this sudden dip. Some point to geopolitical tensions, particularly the ongoing Ukraine conflict, as a major factor increasing investor uncertainty. Others believe that upcoming U.S. inflation data could play a crucial role in shaping the market’s next move. If inflation figures come in lower than expected, it may provide some relief and help stabilize the crypto market.
Despite the recent downturn, seasoned investors remain cautious yet hopeful, watching key economic indicators and global events closely to assess Bitcoin’s potential trajectory in the coming weeks. As volatility persists, traders and investors are bracing for further fluctuations while looking for signs of market recovery.
