The crypto market is facing heavy turbulence as uncertainty spreads. The Bybit exchange suffered the largest hack in crypto history. Adding to the chaos, U.S. President Donald Trump reaffirmed that tariffs on Mexico and Canada are moving forward, fueling investor anxiety. The Crypto Fear & Greed Index has plummeted to Extreme Fear, and the entire crypto market has taken a hit.
Bitcoin has dropped below $90,000 for the first time in months, and Solana is struggling with scandals and upcoming token unlocks. Meanwhile, Pi Network’s highly anticipated mainnet launch ended in a price crash, while XRP gained momentum after Brazil approved the first spot XRP ETF. Let’s break down this week’s key events and what they mean for crypto. Dive into the details in this week’s crypto news.
Crypto market drops: Back to ‘Extreme Fear’ as Trump says tariffs are still on
The crypto market is still feeling the impact of the $1.4 billion Bybit exchange hack, the biggest hack in crypto history. Investor uncertainty has led to widespread selling as many move to reduce risk, causing prices to drop further.
Things got even worse when U.S. President Donald Trump confirmed that his planned tariffs on Mexico and Canada will move forward as scheduled. His statement created more uncertainty in the market, adding to the existing fears caused by the hack. Read more about why these tariffs are a concern in our previous weekly crypto news.
Investor sentiment took a sharp hit, with the Crypto Fear & Greed Index, which tracks investor sentiment, dropped 24 points overnight—falling from 49 (Neutral) to 25 (Extreme Fear) on Feb. 25. This steep decline shows how much confidence has been shaken, as investors worry about the economic impact of the tariffs and the instability in the crypto market.
The total market capitalization of cryptocurrencies fell for 8% in just 24 hours. Bitcoin fell 9%, Ethereum dropped 11%, and Solana lost nearly 15% of its value. Institutional investors continue to reduce their exposure to crypto, adding to the turbulence.
Bitcoin Drops Below $90K – How Low Can It Go?
Bitcoin (BTC) has been struggling to break out of its price range between $91,000 and $102,000 for the past three months. Without enough momentum, it has been moving sideways, just like most major cryptocurrencies. Now, Bitcoin has dropped below $90,000 for the first time since November 2024, with selling pressure increasing due to multiple factors.
One of the biggest drivers of Bitcoin’s drop is U.S. President Donald Trump’s decision to move forward with tariffs on Mexico and Canada, which has made investors more cautious. At the same time, Bitcoin ETFs have seen nearly $1.77 billion in outflows since Feb. 17, with Feb. 24 alone marking a record $516.4 million leaving these funds.
Bitcoin’s price took a sharp hit, falling from $96,600 on Feb. 23 to as low as $87,600 on Feb. 25—a 9.3% drop in just two days. Breaking below $90,000 raises concerns about how much further Bitcoin could fall. Analysts warn that if Bitcoin continues downward into the low $80,000s, it could easily drop further toward $70,000, while other believe the range between $83,000 and $87,000 could be the lowest point before Bitcoin starts recovering. Most agree that current market sentiment is overly negative, which could mean a reversal is coming soon.Historically, when Bitcoin becomes oversold—meaning its price has dropped quickly—it often signals a potential bottom before bouncing back. Some traders point out that this kind of setup only happens a few times per year, making it a possible turning point for Bitcoin.
Bybit suffers the biggest crypto hack in history
On February 21, 2025, Bybit suffered the largest crypto exchange hack in history, with North Korean hacking group Lazarus stealing $1.4 billion worth of crypto. Despite the breach, Bybit assured users that their funds remained safe.
Blockchain investigator ZachXBT linked Lazarus Group not only to this attack but also to recent Solana memecoin scams, including rug pulls on the Pump.fun platform. The news caused market uncertainty, adding further pressure to Solana, which was already struggling due to other market factors.
For a full breakdown of the Bybit hack and what it means for the crypto space, check out our detailed coverage.
Solana Drops as Memecoin Scandals and Token Unlock Cause Uncertainty
Solana (SOL) has been under heavy selling pressure, dropping over 47% from its all-time high of $295 in January. On Feb. 24, its price fell below $157, erasing almost all gains made since Trump’s reelection in November. Several factors are causing the decline, including Solana’s alleged links to the Bybit hack, ongoing memecoin scams, and an upcoming $1.79 billion token unlock event on March 1.
Blockchain investigator ZachXBT revealed that wallets used in the Bybit hack were also linked to Solana-based memecoin scams on Pump.fun. These “rug pulls” have cost investors millions, damaging trust in the ecosystem. The latest scandal—a $107 million fraud involving the Libra token—has further hurt Solana’s reputation.
Memecoins play a crucial role in Solana’s ecosystem, making up a large share of its transaction volume. When investors trade fewer memecoins, the demand for SOL decreases, as fewer tokens are needed for network fees. The loss of trust in meme projects has slowed trading activity, contributing to Solana’s price decline.
Adding to the pressure, Solana is preparing for a major token unlock event, with 11.16 million SOL (worth $1.79 billion) set to be released on March 1—mostly from the bankrupt FTX exchange. Investors are concerned about how much of this will be sold, leading to cautious trading. While the project remains one of the strongest in the crypto space, the combination of scams, hacks, and supply concerns is making traders cautious for now.
Pi Crashes 65% After Mainnet Launch
After six years in development, Pi Network finally launched its open mainnet on Feb. 20, allowing its users to trade their PI tokens for the first time. The project had been operating since 2021, attracting millions of users who mined PI coins through a mobile app. With over 50 million users at its peak and more followers on X than Ethereum and Solana, expectations for the mainnet launch were high.
As soon as trading began, PI’s price crashed from $1.84 to $0.64, a 65% drop, as early adopters rushed to sell. The sell-off raised concerns about the project’s long-term viability, with Bybit CEO Ben Zhou even calling it a scam. Meanwhile, Binance is holding a poll to decide whether to list PI, leaving its future uncertain. This mixed response from major exchanges has left many wondering about the future of Pi Network and whether it can recover from this rough start.
XRP Surges 5% as Brazil Approves First Spot ETF
Before this week’s market downturn, Ripple (XRP) outperformed the market on February 20, jumping 5% to $2.67 after Brazil’s securities regulator approved the first-ever spot XRP ETF.
This marks a major step for XRP adoption, making it easier for both retail and institutional investors to gain exposure without managing private wallets. Meanwhile, in the U.S., the SEC is reviewing multiple XRP ETF applications, and if approved, it could bring billions in new investments. Investor confidence is growing—150 million XRP (worth $388M) was bought in just 48 hours. Some analysts predict XRP could reach $3.37, its last major resistance level.This week’s events highlight the volatility of the crypto market. The combination of global economic uncertainty, security concerns, and major price movements has triggered panic selling and fear. However, opportunities still exist, and the key question is: when will the market reach its bottom and start bouncing back? Stay informed, follow market trends, and remember that crypto markets can shift rapidly. Keep an eye on our Weekly Crypto News to stay ahead of the game.
