Fri Feb 28 14:00:00 UTC 2025: ## Crypto Crash: Bitcoin Plunges Below $80,000, Wiping Out $1 Trillion

**NEW YORK** – The cryptocurrency market is experiencing a dramatic downturn, with Bitcoin plummeting below $80,000, a 25% drop from its all-time high near $110,000. This sharp decline has erased approximately $1 trillion from the overall crypto market capitalization, sparking fears of a deeper correction.

Analysts attribute the crash to several factors. The ongoing trade war initiated by U.S. President Donald Trump, specifically the impending tariffs on Canada and Mexico, is cited as a major contributor. The resulting uncertainty in the broader stock market is prompting investors to move away from riskier assets like Bitcoin, which is known for its volatility.

Technical analysis also suggests further potential drops. Ruslan Lienkha of YouHodler predicts Bitcoin could fall to around $70,000, a strong support level, if negative sentiment continues to dominate equity markets. Markus Thielen of 10x Research echoes this, pointing to a technical pattern suggesting a price target in the low $70,000s.

The current market sentiment is described as extremely cautious, with the Crypto Fear & Greed Index at its lowest point since September. Agne Linge of WeFi highlights the increasing investor preference for stability in the face of economic uncertainty created by the trade disputes, leading to a sell-off in volatile assets such as Bitcoin. Whether this represents a temporary correction or the start of a full-blown market crash remains to be seen, with analysts closely monitoring the situation.

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