Bitcoin’s Dramatic Plunge: Is It Time to Panic or Just Laugh? 😂

by

Ah, the crypto realm, a tempestuous sea where fortunes rise and fall like the tide! Just last week, the market capitalization, that grand figure of $2.75 trillion, took a nosedive, losing a staggering 18%—the lowest it has been since the autumn leaves began to fall. What a sight to behold! 🌊

Support lines, those fragile threads of hope, have been shattered, and all the gains since the presidential circus of November have vanished into thin air, as if they were mere illusions. A jaw-dropping $600 billion has fled the scene, leaving behind a trail of despair and confusion. Who knew money could run faster than a cat chased by a dog? 🐱💨

And what has caused this chaos, you ask? Why, none other than the grand maestro of trade tariffs himself, President Trump! With a flourish, he announced that a 25% tariff on our neighbors to the south and north would soon be upon us, along with a delightful 10% tax on China. The European Union? Oh, they’re not off the hook either! It’s a veritable buffet of tariffs! 🍽️

Since the trade war jitters began on January 20, the crypto markets have seen a staggering $800 billion evaporate. It’s like watching a magician perform a disappearing act, but without the applause. 🎩✨

Trade Tensions

Ah, the sweet symphony of market volatility! Trade tensions create a cacophony that resonates through all asset classes, including our beloved cryptocurrencies and stocks, which are tumbling down like a house of cards in a windstorm. When liquidity dries up, it seems everyone rushes back to the comforting embrace of the US dollar, the so-called ‘safest risky asset.’ Who knew safety could be so risky? 🤔

“The US dollar becomes the ‘safest risky asset’ during trade wars because it’s the most ‘stable’ currency,” mused the Kobeissi Letter, with a wink and a nudge.

Retail investors, bless their hearts, are quaking in their boots, leading to massive daily outflows as the herd moves in unison, like sheep fleeing from a wolf. Baa! 🐑

Crypto markets in trade wars:

Since the trade war worries began, crypto markets have erased a staggering -$800 BILLION. It’s like watching a slow-motion train wreck, isn’t it?

For over a decade, Bitcoin was hailed as a decentralized hedge against uncertainty, but alas, something has shifted in the winds of fate.

Why is crypto falling? Let us explain.

(a thread)

— The Kobeissi Letter (@KobeissiLetter) February 27, 2025

On February 28, CoinGlass reported that over 200,000 traders were liquidated in a single day, to the tune of $800 million. A staggering 86% of them were long positions, and the largest liquidation order was a jaw-dropping $38 million BTC/USDT trade. Talk about a bad day at the office! 💼

Bitcoin Down to $79K

In a dramatic twist, Bitcoin plunged below the $80,000 mark during the Asian trading hours, losing another 6% in a single day. Its weekly losses? Almost 19%! And let’s not forget the 26% correction from its January all-time high. It’s like watching a rollercoaster ride gone horribly wrong! 🎢

“Looking at this price action, I think we have one more violent wave down below $80k, most likely over the weekend, then crickets for a while,” observed BitMEX founder Arthur Hayes, with a hint of foreboding.

Ethereum, too, has been caught in the crossfire, plummeting to just over $2,100, its lowest level in over a year. A staggering 9% loss in a day and 23% since last week—oh, the humanity! 😱

Most altcoins are returning to bear market levels, wiping out all their gains like a child erasing a chalkboard. Yet, if we zoom out, we see that the crypto markets have been on an upward trajectory since the end of the bear market in October 2023, despite the current turmoil. A glimmer of hope amidst the chaos! 🌈

Read More

2025-02-28 09:56