Bitcoin's price plummets below $89,000, marking major decline

Bitcoin (BTC), the world’s leading cryptocurrency, has taken a significant hit, dropping below $89,000 as of Feb. 25, 2025, agencies reported.

Various factors, including macroeconomic uncertainties and market-specific dynamics, are contributing to the decline in Bitcoin's value today.

In the past 24 hours, Bitcoin has fallen over 4.5%, reaching its lowest level since late November, under $89,000, according to CoinMarketCap data.

This drop mirrors a broader crypto market decline, with the total market capitalization decreasing by 8%, from over $3.31 trillion to approximately $3.09 trillion.

Monday's nearly 5% decline was the steepest since Jan. 25, when BTC dropped 5.2%, losing over $5,000 in a single day.

Other cryptocurrencies have also experienced significant losses. Ethereum (ETH) fell 8.5% to below $2,500, while XRP lost 9% of its value, trading at $2.25.

Analysts attribute the drop in Bitcoin and cryptocurrency prices to a major hack of the Dubai-based Bybit exchange, amid fears of Bitcoin price "suppression."

The Bitcoin price briefly spiraled on Friday following the hack's revelation, but has since recovered as Bitcoin-backing U.S. Sen. Cynthia Lummis primes the market for a significant legislation update.

In the wake of these events, Elon Musk's apparent plans to overhaul the Federal Reserve have prompted economists to warn of a "nightmare" scenario for the Fed, which could negatively impact Bitcoin's price.

On Monday, Bitcoin broke out of its prolonged consolidation phase, slipping below the $94,000 support level and closing at $91,552 after a 4.89% decline. As of Tuesday, it continues to trade down by 2.45%, at $89,300.

If Bitcoin's correction persists, it could extend the decline and test its next support level at $85,000.