Bitcoin plummeted, but as long as you understand the reasons, panic won't spread.

A combination of bearish factors including macroeconomic uncertainty, Memecoin chaos, and shaken market confidence.

First, Trump's policies and macroeconomic uncertainty. Since Trump took office, Bitcoin's price has dropped nearly 20%. The Trump administration's trade protectionist policies and tough stance toward global allies have heightened market uncertainty, driving investors toward safe-haven assets. Trump's tariffs have also contributed to broader macroeconomic instability, impacting financial markets.

Second, the Bybit hack. Last week, cryptocurrency exchange Bybit suffered the largest hack in its history, with approximately $1.5 billion worth of Ethereum stolen. The attack intensified concerns about the security of digital asset platforms. Although Bybit promised full compensation for user losses, panic spread, and market confidence plummeted.

Besides the Bybit hack, the recent chaos in the Memecoin market has also shaken investor confidence. The whole crypto market is falling—are you holding or selling? Everyone's dumping—are you joining?

Beyond these factors, selling pressure in the altcoin market has worsened the overall crypto decline. Edward Chin, co-founder of Parataxis, noted that due to continuous token unlocks and supply entering the market, investors are offloading altcoins. Messari research shows that Solana will unlock tokens worth about $1.72 billion on March 1, further increasing downward pressure on its price.

Anyway, Bitcoin has broken below a key support level, and a short-term downtrend is likely, though the downside may be limited. Given the significant correction in crypto-related stocks, whether panic-selling now makes sense is debatable—check back in six months ✌️

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