Bitcoin Plunges Below $80K as Markets Tumble

Bitcoin's price dipped below $80,000 on February 28, amidst significant declines in major markets and economic uncertainty. The cryptocurrency market mirrored the tech sell-off, with Bitcoin reaching its lowest level since November and Ethereum falling to approximately $2,100, erasing substantial gains made since last August. Additionally, SOL dropped beneath $130, marking its five-month low. Compared to prior highs, Bitcoin has decreased by over 25%, Ethereum by more than 45%, and SOL has plummeted more than 55%. The prevailing market sentiment is one of extreme fear, with no immediate signs of recovery.

The US stock market witnessed significant turmoil on the same day, with all three major indices experiencing considerable declines. The Dow Jones Industrial Average fell by 0.43%, while the S&P 500 Index suffered a 1.59% drop, and the Nasdaq Composite fell sharply by 2.78%. The technology sector was particularly impacted, with major players losing a staggering $550 billion in total market capitalization. In particular, Nvidia's recent earnings fell short of expectations, resulting in an initial stock price uptick of 2% before a dramatic decline of over 8% by day's end, erasing more than $270 billion in market value.

In the realms of forex and commodities, the US dollar strengthened by over 0.7% amid clearer tariffs under Trump's administration, while oil prices surged by over 2.5%. The stronger dollar contributed to a 1.3% drop in gold prices, reaching a two-week low. As concerns about a weakening US economy grow, coupled with uncertainty surrounding Trump's policies, market anxiety is palpable. Both US equities and cryptocurrency markets are under heavy pressure, prompting the introduction of new hedging opportunities amidst market volatility.