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Bitcoin drops below $90,000 amid geopolitical tensions and Bybit security breach

ended 25. February 2025

Bitcoin has dropped below $90,000 today due to “the significant impact that macroeconomic events are having on the digital currency”, according to one economist. Newspage asked financial experts and Bitcoin investors what's causing the pull back, what this says about crypto as a whole and whether now is potentially a good time to buy Bitcoin. Their views will appear below until 14:00.

6 responses from the Newspage community

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Tony Redondo
Founder at Cosmos Currency Exchange
Bitcoin fell below $90,000 today, with other cryptos also under pressure as the markets swung to risk aversion, likely due to Trump’s tariff threats spooking markets, a still strong US dollar, rising yields and a $1.5 Bn Bybit hack shaking confidence. Is it a buying opportunity? Maybe, it’s down from $109,000, and some see $150,000+ long-term, but volatility’s brutal. It could hit $80,000 if momentum fades. Crypto’s wild swings (120% down in 2024 yet up historically) draw some and scare others off. If you can handle the risk and believe in the trend, a dip might tempt; if not, it’s a reason to steer clear. Depends on your nerve and outlook.
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Gabriel McKeown
Political & Economics Writer at Sad Rabbit - Substack Newsletter
Bitcoin’s throne is shaking once more, and the wider crypto market is scrambling to make sense of the chaos as the $90,000 threshold has been breached. This downturn is not merely a reflection of inherent market volatility but underscores the significant impact that macroeconomic events are having on the digital currency. The escalating geopolitical tensions stemming from Trump’s aggressive trade policies have injected renewed uncertainty into global markets, leading to risk-off sentiment among investors. Additionally, the recent security breach at Bybit, wrestling in the theft of approximately $1.5 billion worth of ETH has eroded already fragile investor confidence. Compounding these issues, the Fed's current monetary policy outlook plays a pivotal role in shaping Bitcoin's trajectory, with institutional investors reallocating capital towards more stable returns, exerting downward pressure on Bitcoin's price, and amplifying the broader challenges facing the cryptocurrency ecosystem.
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Jamie Elvin
Director at Strive Mortgages
Bitcoin’s drop below $90,000 underscores its extreme volatility. While some see a buying opportunity, the decline is likely driven by profit-taking, macro uncertainty and regulatory concerns. For seasoned investors, price swings are expected, but for others, this reinforces the risks of crypto. Anyone considering buying should weigh their risk tolerance. Bitcoin has rebounded before, but sharp corrections are always a possibility.
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Chris Barry
Director at Thomas Legal
Crypto is extremely volatile and, as such, reacts to extremes when the markets receive positive or negative triggers. This latest pull back is due to Trump's acceleration of tariffs against major trading countries. Altcoins take a larger hit than Bitcoin due to the early unproven nature of most Alts. The markets will likely drop further and this happens regularly. If you zoom out, Bitcoin and subsequently large Alt coins have outperformed any other asset class by a tremendous margin and the gains could start to fly when central banks start printing again.
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Dariusz Karpowicz
Director at Albion Financial Advice
Bitcoin's descent below $90,000 represents standard volatility rather than a crisis in the cryptocurrency market. These significant price fluctuations are characteristic of digital assets, where dramatic swings reflect the inherent risk-reward profile that defines this investment class.
The cryptocurrency market's pronounced volatility explains why many financial institutions maintain cautious positions despite growing mainstream acceptance. For investors, current conditions present both opportunity and risk, requiring careful assessment of one's financial goals and risk tolerance. While enthusiasts may view this as an attractive entry point, prudent investors should remember that cryptocurrency remains a speculative investment that should occupy an appropriate position within a diversified portfolio.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Bitcoin’s recent drop below $90,000 once again highlights its extreme volatility and lack of fundamental stability. While this decline might be due to macroeconomic factors, Bitcoin remains a highly speculative asset, often driven more by market sentiment and questionable liquidity than genuine economic fundamentals.

One major concern is the role of Tether (USDT) in propping up Bitcoin’s price. Tether, a stablecoin that claims to be fully backed by reserves, has long faced scrutiny over its transparency. It's suspected unbacked Tether issuances have been used to inflate Bitcoin’s value artificially. If Tether’s reserves were ever called into question, it could trigger a massive selloff, exposing Bitcoin’s fragile price support.

Rather than seeing this as a "buying opportunity," investors should recognize the inherent risks. Bitcoin’s price history is riddled with dramatic crashes, and without clear regulatory oversight or intrinsic value, it remains an unreliable store of wealth.