The cryptocurrency market is ending the month of February on a bloody note. Almost all assets in the industry lost major gains acquired during the first month of 2025. The global cryptocurrency market capitalization recorded a massive downfall and is currently at $2.87 trillion. The world’s largest cryptocurrency, Bitcoin (BTC) took the biggest hit as it dipped to a low of $82,131.90 all the way from its peak of $109,114.88, achieved about a month ago. Amidst this, the community was under “extreme fear” at this time, according to the Crypto Fear and Greed Index.
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Looking Into The Current market Sentiment
According to the recent data, the Crypto Fear & Greed Index fell farther into “Extreme Fear” on February 27, with a score of 10. Compared to when the now-defunct cryptocurrency exchange FTX crashed, this is lower. To be precise, it’s at its lowest point since June 2022. This was when cryptocurrency hedge fund Three Arrows Capital (3AC) began to decline. That was also just a month after Terraform Labs’ Terra (LUNC) and TerraClassicUSD (USTC) coins, as well as cryptocurrency lender Celsius crashed.
This drop came as a surprise to the community. It should be noted that the index was in the “Neutral” category until February 25. Following Bitcoin’s plunge below $90,000, the index dropped to “Fear.”
Several have been blaming macorecominc factors for this drop. After US President Donald Trump declared that his proposed 25% tariffs on Canada and Mexico “are going forward on time, on schedule,” Bitcoin fell below $90,000 for the first time since November. Trump said that he will also be slapping a 25% tax on the European Union during a cabinet meeting on February 26.
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How Is The Bitcoin Market Faring?
At the time of writing, the king coin was trading at a low of $86,189.15. This comes after a 2.26% drop over the past 24 hours. It should be noted that BTC plunged to a low of $82,131.90 earlier today. The cryptocurrency is currently 20.78% below its all-time high of $109,114.88.
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