Donald Trump has once again crashed the bitcoin rate

On the night of February 27, bitcoin fell below $ 83,000, but later recovered to $ 86,000. The main factor that triggered this drop was Donald Trump’s announcement of a 25% tariff on goods from the European Union. The American president said that the EU was created to «exploit the United States,» and now Washington is changing its approach to trade relations.

The reaction of the financial markets was immediate: companies from the S&P 500 index lost $ 500 billion in capitalization, and the cryptocurrency market suffered significant liquidations. Over the past day, more than $ 1 billion has been withdrawn from bitcoin ETFs, which has reinforced the negative trend.

Presto Research analysts explained that the drop in BTC is due to the curtailment of positions of hedge funds that use arbitrage in the futures market. The spread between long positions in ETFs and short positions on the Chicago Board of Trade narrowed, which triggered a chain reaction of sales.

Despite the general panic, some experts see the current situation as a buying opportunity. According to CryptoQuant, February 25 saw the largest investor surrender since August 2024, when unprofitable positions worth $ 1.7 billion (the equivalent of 79,000 BTC) were closed.

The Fear and Greed Index dropped to 10 points, the lowest since June 2022, signaling «extreme panic» in the market. At the same time, Binance CEO Richard Teng believes that this correction is temporary and the market will recover quickly.