Bitcoin Down Below $90,000; US Trade Concerns Hit Market Sentiments

Cryptocurrencies including Bitcoin, Ethereum, XRP, and Solana fell on February 25 following concerns of US’s investment restrictions on China.

At 1:04 pm, Bitcoin fell by 5.4% to $89,626, while Ethereum dropped 7.7% to $2,498. In the past 24 hours, the market capitalisation of the Cryptos fell by 4.7% to $2.98 trillion in the past 24 hours.

Additionally, Donald Trump’s “on time and on schedule” tariff remark on Canada and Mexico along with curtailment of Chinese investments in critical sectors have dampened investors' sentiments. The US dollar also came under intense pressure amid weak economic data, sluggish retail sales, lower consumer confidence and softer manufacturing and services sector reports.

Edul Patel, CEO and cofounder of Mudrex said, “Global markets have reacted strongly to Trump's 25% tariffs on Canada and Mexico, impacting crypto. Inflation concerns and trade disruptions are driving short-term sell-offs, but investor focus should be on how neighboring countries respond.”

He added, “Bitcoin found support near $91,000, while altcoins like Ethereum, XRP, and Solana took a bigger hit. Resistance remains at $96,000, presenting opportunities as BTC starts its recovery.”

Avinash Shekhar, Co-Founder & CEO of Pi42, said, “Trump's tariff threats against Mexico and Canada have triggered panic, erasing $230 billion from the crypto market.”

He added, “Bitcoin's drop to $91,362 signals market uncertainty. Crypto funds saw $508 million in outflows, while XRP and altcoins continue bleeding. Additionally, Bybit’s mega-breach has heightened security concerns.”

Mainstream altcoins also witnessed downward trends, wherein XRP, BNB and Solana tumbled 9%, 7% and 15.5% respectively. Meanwhile, Cardano, Chainlink, Tron, Sui, Avalanche, Stellar, Litecoin, Shiba Inu, and Hedera reported losses between 6-17%.

Vikram Subburaj, CEO of Giottus said, “Altcoins remain under pressure, with BNB, XRP, and Ethereum down 6-10%, while Solana plunged 13% amid slowing on-chain activity. Bitcoin holding $92,000 is crucial for market stability, with $90,000 being a key downside target if weakness continues.”

Bitcoin’s market cap eroded to $1.825 trillion, with its dominance at 61.25%. The 24-hour trading volume shot up by 144% of $51.42 billion.