Trump's Surprise Crypto Regulation Announcement Sparks Market Rout

Cryptocurrency markets experienced a sharp decline on February 25, 2025, with Bitcoin falling below the $90,000 mark for the first time since November. The downturn comes amid multiple factors affecting market sentiment, from macroeconomic pressures to security concerns within the industry.

The price of Bitcoin dropped to $87,630, marking a 6.78% decline after breaking out of what analysts call an “ascending broadening wedge” pattern. This technical formation is typically considered bearish by market watchers. According to Matrixport analysts, the likelihood of a deeper decline is increasing, particularly concerning since this break is happening during a period of low trading activity. The low trading volume means there may be limited demand for buying the dip, potentially allowing prices to fall further before finding support.

The decline wasn’t limited to Bitcoin. Ethereum, the second-largest cryptocurrency, fell below its key support range of $2,600 to $2,800, dropping to $2,375. Analysts at Spot On Chain warned that Ethereum “could be heading for its worst February if it drops below $2,400.” Historically, February has been a bullish month for Ethereum, with only one red month recorded in 2018.

Other altcoins suffered even steeper declines. Solana (SOL) experienced one of the largest drops among top assets, falling 14.85% to $143.13. XRP slumped 7% to $2.21, though it remains up 6% for the year despite falling 29% over the past month. Cardano (ADA) also saw a major decline, losing 10.96% and trading at $0.6859, while BNB posted somewhat lower losses at 6.55%, trading at $615.13.

The market-wide sell-off resulted in nearly $800 million in leveraged positions being liquidated over a 24-hour period. Long positions accounted for about $600 million of these liquidations, while short positions made up approximately $200 million, showing the extent of market participants being caught off guard by the rapid price movement.

One of the main factors contributing to the decline appears to be President Donald