Crypto News: Bitcoin Price Slumps, Binance Boss Calls It ‘Tactical Retreat’

Bitcoin price crashed below $90,000 on February 25, 2025, for the first time since November 2024—a 19% drop from its December high of $108,000. As the crypto news cycle turned bearish amid rising fear, it would be interesting to see how the crypto prices react.

The slump follows the U.S. President Donald Trump’s confirmation on February 24, 2025, that 25% tariffs on Canada and Mexico will proceed as planned, reversing a 30-day pause from earlier this month.

Amid the chaos, Binance CEO Richard Teng offered calm reassurance. “It’s a tactical retreat, not a reversal,” Teng said in a February 25 X post. “Crypto has been here before and bounced back even stronger,” wrote Teng.

Bitcoin Price Takes a Hit: Price Falls to $89,030

Bitcoin (BTC) traded at $89,030 on February 26, 2025, per CoinMarketCap data. That’s a sharp decline from $108,000 in December 2024.

The drop aligns with Trump’s tariff announcement. Crypto markets often mirror macroeconomic shocks, and this one sent prices skidding. Bitcoin’s value swung between $88,000 and $97,000 on February 25, 2025, reflecting heightened volatility.

Crypto News: ‘Extreme Fear’ Grips Investors

The Crypto Fear & Greed Index hit 21 out of 100 on February 26, 2025, signaling “Extreme Fear.” It fell 28 points in two days, from a “Neutral” score of 29 on February 24, 2025.

Nansen’s Risk Barometer turned “Risk-off” on February 25, 2025, after staying “Neutral” since mid-November 2024. Nansen seeks clarity on Trump’s tariff policies and U.S. growth signals before shifting back to risk assets.

Binance CEO Richard Teng sees the dip as temporary. “History shows crypto reacts to macroeconomic shifts like traditional assets but rebounds with remarkable resilience,” Teng stated in his February 25 X post.

He called it a “short-term tactical retreat, not a structural decline.” Teng’s comments echo crypto’s pattern of bouncing back after turbulence, offering a counterpoint to market panic.

Macro Forces at Play: Tariffs and Fed Caution

Trump’s tariffs sparked the sell-off. On February 24, 2025, he confirmed 25% tariffs on Canada and Mexico would proceed, ending a 30-day pause from mid-February. This uncertainty rattled investors.

Teng added that the U.S. Federal Reserve’s cautious stance on rate cuts fuels the volatility. Lower rates typically boost crypto by reducing returns on bonds and term deposits, making riskier assets like Bitcoin more attractive.

Despite the slump, crypto fundamentals remain strong. Teng noted robust demand for crypto exchange-traded funds (ETFs) and new U.S. applications since Gary Gensler stepped down as SEC Chair on January 20, 2025.

Asset managers have filed for ETFs tied to XRP, Cardano, Solana, and Dogecoin as of February 2025. “The fundamental indicators of crypto’s strength are getting stronger,” Teng said.

Analyst Insights: Van de Poppe Sees Opportunity

MN Trading founder Michaël van de Poppe offered a contrarian view in a February 25 X post. “Max peak in negative sentiment where I’ve received a lot of ‘panic’ messages is usually a great sign,” he wrote.

His comment suggests the market’s fear could signal a buying opportunity, aligning with Teng’s resilience narrative.

Bitcoin’s price and market sentiment will hinge on Trump’s tariff clarity and Fed moves. As of February 26, 2025, crypto traders watch nervously.