The bloodshed in the cryptocurrency markets shows no sign of slowing down. Bitcoin hit its lowest level in the past three months at $86,000. Analysts have expressed that Bitcoin is at a critical juncture. Here are the reasons behind the decline in the crypto market…

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

Moreover, there was the largest daily outflow yesterday from spot Bitcoin exchange-traded funds (ETFs) worth $938 million. ETFs saw a total net outflow of $2.4 billion in February. WHY IS BITCOIN FALLING? A sharp decline in the crypto markets followed after US President Donald Trump’s statements regarding tariffs. Trump stated that tariffs on products imported from Canada and Mexico would continue as planned. Concerns about the inflationary impact of trade wars, which could slow down central bank interest rate cuts, are rising. Today, President Trump issued an order to investigate copper trade as well. Analysts pointed out that Bitcoin was increasingly related to traditional markets. Emphasizing the increasing macroeconomic uncertainties, analysts highlighted that Bitcoin was at a critical juncture. MEMECOIN COLLAPSE BEGINS Among the factors contributing to the market decline is the decrease in demand for memecoins. Standard Chartered analysts noted that despite Bitcoin trading relatively well, there was an acceleration in memecoin-related sales on the Solana network. This trend indicates an increasing tendency among investors to move away from risky assets. The memecoin frenzy came to light most recently with the LIBRA scandal involving Argentine President Javier Milei. LIBRA, supported by Milei, quickly reached a value of $4.5 billion before dropping by 95%.

The end of the memecoin craze increased 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. Attackers seized 401,000 Ethereum, estimated to be worth $1.5 billion in stolen assets. After the attack, Ethereum and related cryptocurrencies experienced sharp declines. The attack is reportedly attributed to the North Korean Lazarus Group.