Bitcoin Plummets to Three-Month Low Amid Trade War Fears and Extreme Market Sentiment

On February 25th, a report from an analyst at Shenwan Bank highlighted a significant decline in Bitcoin, which plummeted to a three-month low. This downturn is primarily attributed to escalating concerns regarding the ongoing trade war, which is exerting additional pressure on various risk assets, prominently including cryptocurrencies. The analyst pointed out that comments from former President Trump regarding the enforcement of tariffs on both Canada and Mexico, set to take effect post-March 4th, are contributing factors. Additionally, this recent political rhetoric has driven the cryptocurrency fear and greed index to a troubling level of “extreme fear,” representing the lowest sentiment seen in recent months. This trend underscores the increasingly fragile sentiment surrounding Bitcoin and the broader cryptocurrency market, highlighting the vulnerability of these digital assets amidst geopolitical tensions.