$370 Billion Wiped Out as Bitcoin Hit 3 Month Low Price

The crypto market is facing a sharp drop today, with its total value falling nearly 8% to around $2.90 trillion. This has made the entire crypto market losing over $370 billion in value since last week. The sudden crash has also led to massive liquidations, with $110 billion lost in the last 24 hours.

Bitcoin, the largest cryptocurrency by market cap, has dropped nearly 8%, reaching a three-month low of $87,000 before settling at $89,470.

Crypto Markets Are Bleeding

Altcoins have suffered even worse losses. Ethereum, XRP, Solana, and Cardano have all dropped between 10% and 20%. Memecoins, which were booming recently, have also crashed—Dogecoin is down almost 10%, followed by Shiba Inu, Pepe, and the Official Trump token.

One major factor behind the sell-off was a statement from President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election President , confirming that the U.S. would move forward with tariffs on goods from Canada and Mexico. He claimed the U.S. has been treated unfairly and confirmed that tariffs would proceed as planned. This raised concerns that a previously expected pause on tariffs might not happen, shaking investor confidence.

Citadel’s Crypto Move Backfires

Surprisingly, Citadel Securities’ entry into the crypto market also contributed to the downturn. The $65 billion financial giant announced that it would become a liquidity provider in crypto. Instead of boosting confidence, this news triggered more selling, as traders reacted negatively.

Adding to the chaos, crypto exchange Bybit was hit by a major hack on February 21st. According to Arkham Intelligence, this could be the largest financial hack in history, even surpassing the $611 million PolyNetwork exploit in 2021. Hacks like this shake trust in the market and make investors more cautious.

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Is This Just a Dip or a Prolonged Crash?

While the market looks rough right now, history shows that crypto has bounced back from big drops before. Bitcoin has fallen 10% or more many times in past bull runs and has always recovered stronger.

But with uncertainty in traditional markets as well, investors are being extra cautious. The big question is whether this is just a temporary dip—or the start of a bigger downturn. Only time will tell.

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