Bitcoin fell below $90,000 on Tuesday, sinking nearly 20% from its all-time high that was reached just a month ago during Donald Trump’s inauguration. The leading cryptocurrency, which had been rallying since Trump’s re-election in November, now appears to be losing momentum—suggesting that the Trump-driven crypto surge may be over.
On Tuesday morning, the flagship cryptocurrency was trading at $87,290, reflecting a decline of 8% over the past 24 hours. Other major cryptocurrencies experienced similar downturns: Ether, the second-largest cryptocurrency by market capitalization, fell by 10% during the same period. Additionally, XRP, Solana, Dogecoin, and Cardano all dropped by more than 10% in a single day.
What’s the reason for the sudden drop?
In recent weeks, Bitcoin has remained either stagnant or in the red, awaiting a catalyst for price movement. However, its latest decline may be linked to a crypto hack targeting a Dubai-based exchange named Bybit. On Feb. 21, 2025, attackers—allegedly the North Korean state-sponsored Lazarus Group—stole approximately $1.4 billion in crypto assets from the exchange’s wallet. Adding to market jitters, the recent memecoin scandal involving Argentina’s President Javier Milei has reignited skepticism and negative sentiment among investors, further weighing on the crypto market.
Bitcoin ETFs face massive outflows
Once hailed as the most successful exchange-traded funds (ETFs) in history, U.S. Bitcoin ETFs have seen significant withdrawals in recent weeks. Excluding two positive days, they have recorded net outflows totaling $1.6 billion over the past two weeks. This sustained outflow is naturally putting pressure on Bitcoin’s price, signaling that investors are no longer pouring in funds at the same pace as before.
Read more: Bitcoin is better than gold. Here’s why
No progress on the Bitcoin Reserve
Crypto investors had been eagerly awaiting updates on when the Trump administration would begin stockpiling Bitcoin for the national reserve. While several state governments are pushing to establish their own Bitcoin reserves, the federal government remains indecisive—a delay that may be weighing on investor sentiment.
Macroeconomic factors at play
As Bitcoin becomes increasingly mainstream, it is beginning to mirror the stock market’s reaction to macroeconomic conditions. Recent inflation reports, economic data, and a series of Trump-imposed tariffs have shaken investor confidence, adding to the market’s uncertainty.