Yahoo Finance

Bitcoin (BTC-USD) has fallen by over 23% from its January peak of $109,350 (£86,246), reaching an intraday low of $83,740 (£66,077) amid significant outflows from spot bitcoin exchange-traded funds (ETFs).

Between Monday 24 February and Wednesday 26 February spot bitcoin ETFs saw cumulative outflows of around $2.43bn, according to data from Farside Investors, highlighting a broader shift in investor sentiment amid increasing market uncertainty.

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Monday saw outflows of $539m, followed by $1.14bn on Tuesday and $754.6m on Wednesday.

Bitcoin was down 3% to trade at $86,092 on Thursday, with an 11% drop over the past week.

Ethereum (ETH-USD) fell by 4.5%, with Solana (SOL-USD) trading flat.

Adding to market jitters, US president Donald Trump’s proposal of a 25% tariff on European goods has contributed to a sharp decline in investor confidence.

The Crypto Fear & Greed Index — which quantifies market sentiment on a scale of 0 to 100 — fell to 21 this week, signalling “Extreme Fear,” according to Coinglass data.

Some analysts are concerned that the economic impact of rising trade tensions could further weigh on risk assets, including cryptocurrencies.

Market performance and analyst outlook

Despite the downturn, some analysts argue that bitcoin’s decline is not necessarily indicative of a bear market. “While some fear the start of a bear market, history suggests that 25% pullbacks are common in bull cycles," BRN analyst Valentin Fournier said. He cited US efforts to establish a National Crypto Reserve as a long-term catalyst for the sector.

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He added that bitcoin’s recent losses appear to be driven by a mix of institutional outflows, macroeconomic uncertainty, and security concerns, such as the recent $1.5bn Bybit cryptocurrency exchange hack.

The hack, which resulted in the theft of 401,346 ETH, sent shockwaves through the industry, with Bybit reportedly using loans from industry partners to replenish its reserves and avoid liquidity issues.

Although Bybit managed to process all customer withdrawals, the breach has reinforced concerns about security risks in centralised exchanges.

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