Bitcoin collapsed below $79,000 for the first time since November 2024

According to the Binance crypto exchange, the BTC/USD exchange rate on the night of February 28 fell to $78,347 for the first time since November 10 last year.  In just one day, the cryptocurrency lost 6.8%. 

The bitcoin exchange rate reached an all-time high on January 20, 2025, the day of the inauguration of US President Donald Trump. Then, for the first time in history, the value of the cryptocurrency rose to the level of $109,410.

The current bearish trend started on February 3, when the value of cryptocurrencies plummeted after the US imposed trade duties against Mexico, Canada and China. Since bitcoin is traditionally traded as a risky asset, it can react negatively to any uncertainty surrounding the trade war. In this regard, investors expect a further decline in the crypto market. 

Another factor of pressure on the market was the hacking of the Bybit cryptocurrency exchange. Last week, hackers stole about $1.5 billion worth of digital tokens from the exchange. Analysts have already dubbed this one of the largest cryptocurrency hacks in history.