Losses in the crypto markets continue to accelerate. Bitcoin hit its lowest level in the last three months at $86,000. Analysts expressed that Bitcoin is at a critical juncture. Here are the reasons for the decline in the crypto market…

The selling pressure in the crypto markets has deepened. The market’s biggest asset, Bitcoin, fell by over 10% this week. Yesterday, Bitcoin tested $86,000 with a loss of over 5%, reaching its lowest level since November 2024. The leading cryptocurrency is now trading around $89,000 due to buying support coming from the lows. The second-largest asset in the market, Ethereum, dropped to $2,300 and is now hovering around $2,500 today.

Furthermore, yesterday saw the biggest daily outflow from spot Bitcoin exchange-traded funds (ETFs) at $938 million. A total of $2.4 billion in net outflows from ETFs have been recorded since February. WHY IS BITCOIN FALLING? The sharp decline in the crypto markets followed statements by U.S. President Donald Trump regarding customs duties. Trump stated that the customs duties imposed on products imported from Canada and Mexico would continue as planned. There are concerns that trade wars could have an inflationary effect, which may slow down central banks’ interest rate cut processes. Today, President Trump also issued an investigation into copper trading. Analysts pointed out that Bitcoin is increasingly correlating with traditional markets. They emphasized that Bitcoin is at a critical juncture as macroeconomic uncertainties rise. MEME COIN DECLINE STARTED Among the factors leading the decline in the market, it was noted that the decrease in demand for meme coins was also influential. Standard Chartered analysts stated that despite Bitcoin trading relatively well, sales related to meme coins on the Solana network have accelerated. This indicates that investors are inclining towards moving away from risky assets. The meme coin frenzy was highlighted by the LIBRA scandal involving Argentine President Javier Milei. LIBRA, backed by Milei, quickly reached a value of $4.5 billion and then fell by 95%.

The end of the meme coin craze intensified losses in Solana and related crypto assets. LARGEST CRYPTO ATTACK IN HISTORY On the other hand, a large-scale cyber attack was carried out on the crypto exchange Bybit over the weekend. Attackers seized 401,000 Ethereum, with the stolen assets estimated to be worth $1.5 billion. Following the attack, Ethereum and connected cryptocurrencies experienced sharp declines. The attack is allegedly attributed to the North Korean Lazarus Group.