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Why cryptos drop: Analysis and context of the fall in the market in February and March 2025
If you are wondering why cryptos are currently falling, the brief response is that several factors have been combined to create a lower market . Between the global economic environment, political announcements and volatility inherent in the ecosystem, cryptocurrencies have undergone a notable decline in recent weeks. You will discover below the origins of this fall, the reasons for which it is not necessarily final and how the news, sometimes amplified by certain media, can influence the orientation of the market.
Table of contents
Why are cryptos drop? Quick context in 2025
During the months of February and March 2025, the price of Bitcoin and that of many other cryptocurrencies have significantly retreated. However, this drop follows a period of euphoria launched by the nomination of Donald Trump in January 2025, when the markets seemed to anticipate pro-Crypto measures . Investors, looking for favorable signals, bet on the creation of an strategic reserve in Bitcoin and the approval of new ETFs (Exchange Traded Funds) on certain stock market platforms.
However, between the threat of a trade war , the fed monetary policy of the Fed and the mediatized impact of certain events such as the attack on the Bybit , the market was faced with a series of turbulence. Add to that a feeling of geopolitical uncertainty and the dissemination of news potentially exaggerated by certain media, and you get a climate conducive to the disengagement of many investors.
The impact of major cycles: why the decline is not a first
The history of cryptocurrencies is punctuated by successive phases of expansion and retraction. The bull run that we experienced at the end of 2024 and early 2025 is part of this cyclic tradition. However, these long -term trends can be punctually disturbed by exogenous factors, as is the case in recent months.
A complicated macroeconomic environment
In the first quarter of 2025, there was an increase in volatility on the stock markets. This instability is reinforced by geopolitical tensions and economic uncertainties linked to inflation . Institutional investors, who had started to be interested in cryptocurrencies when interest rates were lower, were faced with a less accommodating than expected federal reserve ( Fed The risk of recession in the United States and other major economic zones then leads to transfers of risky assets to assets deemed more stable (bonds, gold, etc.).
These movements are not new: each macroeconomic instability, we generally witness a renewed prudence among investors. The cryptocurrency market, already used to fluctuations, is full of these readjustments when the overall situation is tightened and the selling pressure increases.
The possibility of a trade war under the presidency of Trump
Among the direct causes mentioned, the threat of a trade war between the United States and several of its partners (China, Europe, Canada, Mexico) has regularly reappeared since the inauguration of Donald Trump . The announcement of new taxes or customs duties on imports leads to a climate of instability. In this context, capital often turns into high volatility , such as cryptocurrencies.
The initial promises of support for bitcoin and decentralized finance ( DEFI ) have not yet been translated into concrete measures. Investors, who bet on a more marked institutional adoption, therefore experienced a certain disenchantment, contributing to the fall of bitcoin and the decline in many other cryptocurrencies.
Why are cryptos drop? Significant events that have accelerated the trend
The attack on the Bybit platform
In February 2025, the security of the Bybit , however deemed solid, was compromised and led to the flight of approximately 1.5 billion dollars . This massive piracy has created a panic movement, among investors, recalling that the risks of hacks remain despite the constant cybersecurity progress. The fears around the safety of wallets then pushed many players to withdraw their funds from the Exchanges, strengthening the drop in prices.
The controversy linked to Deepseek: the influence of the media
A striking fact of this early 2025 concerns Deepseek , an open artificial intelligence competing chatgpt, capable of offering comparable performance while requiring less computing power . This advance was perceived as a threat to actors dependent on the heavy infrastructure, in particular NVIDIA , whose action has dropped in the face of the prospect of reduced GPU demand. Relayed massively by the media from January 27 (while the report was issued a week earlier), the announcement was misinterpreted by the markets, triggering a climate of generalized mistrust , including against investments in cryptocurrencies. However, this innovation can make AI and blockchain more accessible and efficient , and could prove to be very positive in the long term.
This phenomenon perfectly illustrates how the dissemination of information, sometimes incomplete or poorly contextualized, can trigger a offset drop in time. Investors discover, worried, then act. When the media relays a subject intensely, they often strengthen the Fud ("Fear, Uncertainty, and Doubt"). Result: the sales pressure increases, and some solid projects are unjustly undervalued.
When the media amplifies the impact of a new
It is essential to understand how media coverage can act as a catalyst for a lower movement. A simple technical event or a hack can be transformed into a "pre-runner sign" of a generalized collapse. However, the influence of the major media can lead to negative interpretations that cause massive sales. This principle of self -treatment is well known in the world of markets: the more we insist on the degradation of a sector, the more the actors move away from it, thus concretizing the initial prophecy.
Why are cryptos drop? The fundamentals of the ecosystem: why the blockchain remains solid
Despite this cyclical drop, the blockchain and the crypto universe continue to evolve. Innovation continues, whether in the field of smart contract , decentralized finance or new applications based on AI . Major companies are still interested in the integration of decentralized protocols in their services, and the volume of global transactions has not experienced a major collapse.
Although the market capitalization of cryptocurrencies has decreased, the number of projects continues to increase. Innovations linked to token S (NFT) are evolving, while new scalability and privacy protocols are being tested. In other words, the attention remains lively, and the long -term perspectives are not called into question, even if the valuation is currently undergoing market law.
The search for technical reasons: analysis of volumes and trading signals
From the point of view of technical analysis , several clues have tipped the scale in favor of a withdrawal. The Haussier rally which brought bitcoin to more than $ 100,000 at the end of January 2025 presented over -racket indicators on many oscillators (RSI, Stochastic, etc.). The sellers were therefore waiting for the right time to take their profits.
When a panic movement switches, it is often amplified by algorithmic trading . The algorithms, programmed to sell as soon as a certain technical threshold is crossed, create cascade sales. Exchange volumes suddenly increase, bringing the courses even faster. Particular traders, seeing prices go down, can be tempted to sell their cryptos to avoid additional losses, which leads to a snowball effect.
A renewed of next optimism?
Although the current situation seems pessimistic, this decline could open the way for healthy consolidation. bull run potential as soon as the macroeconomic context has cleared and American policy will become less uncertain. Companies seeking to use the blockchain in their internal processes continue to launch new projects, and institutional adoption is not stopped, even if it marks a break.
Why are cryptos drop? Psychological factors: Fud and influence of opinion leaders
Fear, uncertainty and doubt (which we group under the acronym Fud ) are determining elements on a market as young as that of cryptocurrencies. When an opinion leader, a large investor or known media emits negative opinions, he can trigger a massive movement of sales. Conversely, a tweet or a declaration of enthusiasm can revive the purchase dynamics. Confidence being the main engine of these markets, it weakens quickly as soon as a bad news, real or perceived as such, makes the headlines.
Why cryptos drop: a summary of the main reasons
To summarize, several factors have been combined to explain why cryptocurrencies have been falling since February 2025:
- Macroeconomic factors : risk of recession , strict monetary policy etc.
- Donald Trump 's policy : unpacked pro-Crypto promises, trade , commercial instability.
- Technical events: Piracy of Bybit , controversial announcement of Deepseek, not necessarily well interpreted on the Crypto market.
- FUD 's dissemination in the media: shifted timing, amplification of news that was not necessarily negative.
- cycle effect of the crypto market: after a substantial rise, a period of consolidation and withdrawal is frequent.
- A certain disenchantment as to institutional adoption, despite the arrival of ETF on Bitcoin and Ethereum last year.
Why are cryptos drop? Looking towards the future, is the recovery soon?
As often in the field of cryptocurrencies, the future depends on both exogenous (political, economic, geopolitical) and endogenous (innovation, adoption, regulation) factors. The question is not so much to know if the markets will recover, but rather when. Several parameters encourage optimism:
- The continuation of the adoption of blockchain by companies and governments.
- The strengthening of regulatory executives, which could attract more cautious institutional investors.
- The generalization of AI blockchain and other technological innovations related to decentralized finance .
The lesson to remember: the crypto market is resilient
Despite the tremors and doubts, cryptocurrencies have already overcome more serious crises in the past. Whether it is the break -up of the ICO bubble in 2018, the multiple regulations in China, or even the hacks of Exchanges over the years, the ecosystem has always been able to show resilience. Bitcoin, born in 2009, has gone through various panic movement and now has more than fifteen years of history. This longevity confirms part of the investors in the idea that the queen cryptocurrency can still bounce back.
Conclusion: stay vigilant and informed
Understand why cryptocurrencies fell at the start of 2025 at the start of 2025 requires taking into account a set of factors: politicians, economic, media and technological. Geopolitical tensions , the threat of a trade war , the stricter monetary policy of the Fed , the Hack of Bybit or the confusion aroused by Deepseek are all reasons that have affected the market. But, to look more closely, blockchain and decentralized finance continue to progress in terms of concrete solutions and adoption worldwide. Investors and developers remain active, even in turmoil, which testifies to fundamental confidence in the potential of the ecosystem.
The recent, very real fall therefore does not seem to sound the end of the Crypto revolution. Market capacity to recover from previous crises demonstrates underlying robustness. It is simply necessary to remain cautious, to move and to follow an investment strategy adapted to its risk profile. Over time, if the history of bitcoin and cryptocurrencies serve as a guide, it is likely that new bullish phases will occur, fueled by innovation, scarcity and the growing interest of institutions. By then, the best approach is to observe the fundamentals and avoid giving in to panic.
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Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
