The cryptocurrency markets continue to experience bloodshed. Bitcoin hit the lowest level in the last three months, dropping to $86,000. Analysts emphasized that Bitcoin is at a critical juncture. Here are the reasons for the decline in the crypto market…

Selling pressure deepened in the cryptocurrency markets. The market’s largest asset, Bitcoin, dropped over 10% this week. Yesterday, Bitcoin tested $86,000 with a decline of over 5%, marking its lowest level since November 2024. The leading cryptocurrency is now trading around $89,000 due to buying momentum from the bottom. The market’s second-largest asset, Ethereum, also fell to $2,300. ETH is currently hovering around $2,500.

Moreover, the largest daily outflow of $938 million was recorded in spot Bitcoin exchange-traded funds (ETFs) yesterday. A total of $2.4 billion in net outflows occurred from ETFs in February. WHY IS BITCOIN FALLING? The sharp decline in the crypto markets came after U.S. President Donald Trump’s remarks on tariffs. Trump stated that tariffs on products imported from Canada and Mexico will continue as planned. Concerns arise that trade wars could have an inflationary impact, which may slow down central banks’ rate-cutting process. President Trump has also issued a directive for an investigation into copper trade today. Analysts pointed out that Bitcoin is increasingly correlated with traditional markets. Analysts highlighted the increasing macroeconomic uncertainties and emphasized that Bitcoin is at a critical juncture. MEME COIN DECLINE BEGINS Among the factors contributing to the market’s decline is the decrease in demand for meme coins. Analysts at Standard Chartered noted that while Bitcoin is performing relatively well, meme coin-related selling on the Solana network has intensified. This indicates a growing tendency among investors to move away from risky assets. The meme coin craze re-emerged with the LIBRA scandal involving Argentine President Javier Milei. LIBRA, which Milei supported, quickly reached a value of $4.5 billion and then dropped by 95%.

The end of the meme coin frenzy escalated losses in Solana and related crypto assets. THE LARGEST CRYPTO ATTACK IN HISTORY On the other hand, a large-scale cyberattack was carried out on the crypto exchange Bybit over the weekend. The attackers seized 401,000 Ethereum, estimated to be worth $1.5 billion. Following the attack, Ethereum and related cryptocurrencies experienced sharp declines. The attack is alleged to have been carried out by the North Korean Lazarus Group.