Cryptocurrencies have seen precipitous drops in their valuation amid a bout of controversies.
While crypto is no stranger to market instability, this latest drop is value is more notable than most. Bitcoin has dropped to its lowest price since November 2024, dipping below £71,000, as has Ethereum.
This represents a 16.5% drop in Bitcoin compared to its one-month high valuation in late January. It represents hundreds of billions of dollars in lost value.
Why? There are several stories likely to have contributed to this short-term loss of confidence in crypto.
The first concerns a hack of one of the largest crypto exchanges, while uncertainty over how the plans of Trump and Musk in the U.S. will affect investors is also expected to have taken its toll.
We’re going to take a deeper look into the events behind this sudden drop amid what crypto investors hope is the beginnings of the recovery on February 25.
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Bye for now!
Tuesday 25 February 2025 17:04 , Rachael DaviesAnd that’s us signing off for the day!
We’ll be back with more of the latest crypto news soon.
It's not bad news for everybody
Tuesday 25 February 2025 17:02 , Rachael DaviesWhile the rest of the crypto industry struggles, crypto asset manager Bitwise has secured a $70 million equity rise, led by crypto venture firm Electric Capital.
The firm plans to use the proceeds to bolster its balance sheet, with a focus on expanding its investment possibilities and services for customers, as well as growing its headcount.
Today we’re excited to announce Bitwise has completed a $70 million round of funding from top financial institutions and technology investors as we continue building the leading crypto asset management firm.
— Bitwise (@BitwiseInvest) February 25, 2025
Investors in the round include:
- Electric Capital
- MassMutual
- MIT… pic.twitter.com/AJ5UCzT8uq
Join the DOT(s)
Tuesday 25 February 2025 16:45 , Rachael DaviesGrayscale Investments, a crypto asset-management company, is already looking to add XRP and Cardano exchange-traded funds to its offerings.
Now, it’s starting down the route for an ETF investing in Polkadot's DOT token as well, as Nasdaq has filed a formal Form 19b-4 request with the SEC to list and trade shares of DOT.
DOT is currently trading at $4.4 after a 6.7% loss in the last 24 hours.
The deep dive
Tuesday 25 February 2025 16:31 , Rachael DaviesWe’ve been tracking the major news blasts in the world of crypto here – but are you looking for a closer look at the reasons behind Bitcoin and the wider crypto industry’s loss in value?
Here’s a closer look at the factors leading to the price of Bitcoin falling dramatically over the last 24 hours, returning to November 2024 values.
Bull versus bear
Tuesday 25 February 2025 16:20 , Rachael DaviesCrypto traders are debating where to act bullish or bearish in the wake of plummeting market values.
Absolutely nobody wants to read bearish Bitcoin takes on here.
— Stack Hodler (@stackhodler) February 25, 2025
Bull posts feel much better to read and to write.
But I've had a bearish tweet pinned to my profile for the past 7 days because I wanted to be as transparent as possible.
I've bull-posted nonstop since the 2022… pic.twitter.com/HL1B1hersN
Crypto issues are bleeding into the traditional markets, meaning there could be tricky times ahead all round.
ICYMI: "The worst hack in history"
Tuesday 25 February 2025 15:51 , Rachael DaviesNorth Korean cyberhackers have been tied to a $1.19 billion crypto theft.
Dubai-based Bybit exchange confirmed the massive heist, where the group of hackers seized control of an Ethereum wallet and removed its contents in full.
Read the full story here.
Crypto experts warn off 'buying the dip'
Tuesday 25 February 2025 15:40 , Rachael DaviesGeoff Kendrick, head of crypto research at Standard Chartered Bank, has warned traders not to jump on the Bitcoin ‘buy the dip’ bandwagon just yet.
“Before buying the dip is attractive I think we get a $1 billion ETF outflow day,” Kendrick told Forbes. That would outdo the previous worst-ever day for spot Bitcoin ETFs of $583 million in outflows.
BITCOIN COULD FALL FURTHER AFTER BREAKING BELOW $90K: STANDARD CHARTERED
— *Walter Bloomberg (@DeItaone) February 25, 2025
Bitcoin has hit a three-month low below $90,000, and Standard Chartered's Geoff Kendrick expects it to fall further. While still performing "relatively well," bitcoin is caught in a broader cryptocurrency…
‘Buying the dip’ refers to buying up cryptocurrencies while they’re at a low, in the hopes of seeing the value rise once again.
Disgraced CEO breaks his silence
Tuesday 25 February 2025 15:28 , Rachael DaviesFormer founder of now-bankrupt FTX, Sam Bankman-Fried (often known as SBF) now appears to have posted a series of messages on X from jail. It’s unclear whether the posts from from SBF or someone posting on his behalf.
While serving a 25-year sentence for fraud and embezzlement, SBF has shared a series of thoughts on layoffs, making allusions to the recent federal job losses.
1) I have a lot of sympathy for gov’t employees: I, too, have not checked my email for the past few (hundred) days
— SBF (@SBF_FTX) February 25, 2025
And I can confirm that being unemployed is a lot less relaxing than it looks
“I have a lot of sympathy for gov’t employees: I, too, have not checked my email for the past few (hundred) days,” his account tweeted. “And I can confirm that being unemployed is a lot less relaxing than it looks.”
“Firing people is one of the hardest things to do in the world,” the posts continued. “It sucks for everyone involved. My experience: a) it is usually not the employee’s fault that they got fired b) it is usually correct to let them go anyway.”
Spotlight on Solana
Tuesday 25 February 2025 15:13 , Rachael DaviesThe ongoing crypto market plummet came about due to a number of factors, but many experts are citing memecoin as a central cause.
After President Trump’s return to the White House was thought to usher in a boom for cryptocurrencies, a lack of concrete policies has caused a loss in market confidence.
Solana, among other exchanges, is now down by 22% since Friday.
This comes after experiencing some strength during the memecoin frenzy.
£118 billion liquidated in 24 hours
Tuesday 25 February 2025 15:02 , Rachael DaviesA new report from the Kobeissi letter that over the last 24 hours, the crypto market has recorded $150 billion (£118 billion) in liquidations.
Did liquidity in crypto just dry up?
— The Kobeissi Letter (@KobeissiLetter) February 25, 2025
Crypto markets have now erased -$325 BILLION of market cap since Friday morning.
At 5:00 PM ET today, crypto lost -$100 billion in 1 HOUR without any major headlines.
What is happening with crypto? Let us explain.
(a thread) pic.twitter.com/6jJSu8U9gj
The findings highlight how the fall of meme coins led the change, sparking the loss in value of cryptocurrencies across the market.
A first for Dubai
Tuesday 25 February 2025 14:46 , Rachael DaviesThe Dubai Financial Services Authority (DFSA) has officially approved USDC and EURC as recognized crypto tokens within the Dubai International Financial Centre (DIFC).
That marks an important milestone, being the first time that stablecoins have been approved within the DIFC.
Financial institutions and fintechs can now integrate USDC and EURC into digital asset services, adding to an already-growing fintech ecosystem in Dubai.
Traders are seizing the opportunity
Tuesday 25 February 2025 14:24 , Rachael DaviesCrypto traders are seizing the moment as Bitcoin falls to a three-month low, according to sources at Kraken, one of the 10 biggest crypto exchanges.
Alexia Theodorou, head of derivatives at Kraken, told CoinDesk the long-short ratio – a measure of how many buy positions are open relative to active sell positions – has leapt to a record-high of 0.8.
“This suggests traders could be anticipating a rebound and effectively 'buying the dip,'" Alexia commented.
Ether's plummet could trigger $340 million liquidations
Tuesday 25 February 2025 13:02 , Rachael DaviesAs the value of more cryptocurrencies continue to slide, Ether’s value has dropped more than 11% to $2,390 in the last 24 hours.
Already, $296 million (£234 million) has been liquidated on centralised exchanges – but more could be in store.
If the crypto currency drops by another 19%, this could trigger a series of $340 million (£270 million) liquidations on the collateralised debt platform, MakerDAO.
That could offer an opportunity for fast-acting traders to purchase under-valued assets.
The biggest crypto nightmare in the UK
Tuesday 25 February 2025 12:18 , Andrew WilliamsFancy some lunch-time reading? Let’s check back in with a story many UK crypto fans will know, that of James Howells from Newport.
His partner threw away a hard drive containing a digital wallet of 8000 BTC, currently worth around £564 million, more than a decade ago in 2013. In that year alone the value of the currency rose from £8 to £455.
Howells is currently appealing the ruling of a high court judge who rejected his petition to gain access to the landfill site where that hard drive resides.
The BBC caught up with Howells earlier this month, and discussed his plans to potentially acquire the site once it is closed, which is expected to happen within the next couple of years.
Coinbase versus the SEC
Tuesday 25 February 2025 11:58 , Andrew WilliamsCoinbase claims the U.S. SEC has dropped its case against the exchange, which was raised in 2023.
Paul Grewal, Coinbase’s chief legal officer, says the SEC (Securities and Exchange Commission) has agreed to drop the case, which posits the exchange made billions of dollars “unlawfully facilitating the buying and selling of crypto asset securities.”
While this latest move is still to be confirmed by the SEC, it may be taken as a symptom of the shifting priorities of the U.S. government in Trump’s second term.
Coinbase is the most prominent crypto exchange in the U.S.,.
Saylor's big Bitcoin bet
Tuesday 25 February 2025 11:23 , Andrew WilliamsOne of the figures who may inform the Trump government’s approach to crypto regulation has doubled down on Bitcoin despite its fall in value.
Michael Saylor, who is a co-founder of strategy.com, reportedly met with the U.S. Securities and Exchange Commission on Friday to present his Bitcoin Reserve Plan to the SEC’s Crypto Task Force.
“Digital asset regulation must prioritise efficiency and innovation over friction and bureaucracy,” says Saylor.
To prove the point, Saylor’s Strategy announced the acquisition of an additional 20,356 BTC at $97,514, a total spend of $1.99 billion.
At the time of writing, those bitcoins are now worth $1.79 billion. The company holds 499,096 BTC, roughly half the amount estimated to be owned by Bitcoin creator Satoshi Nakamoto.
Malnourished Melania
Tuesday 25 February 2025 11:03 , Andrew WilliamsCrypto influencer Brian Krassenstein has taken to X to note how much the recent cryptocurrency drop has further devalued the Official Melania Meme coin. It launched alongside Trump’s own coin just ahead of the president’s inauguration in January.
The Melania coin began its life valued at $7.43 and now sits well below a dollar. It has also lost 24.6% of its value in the last 24 hours according to Coin Gecko.
REMINDER: If you invested $13,000 in Melania Trump’s crypto scheme just a month ago, your balance is now $990.
— Brian Krassenstein (@krassenstein) February 25, 2025
Congratulations! You’ve been scammed by the First Family. pic.twitter.com/0Hyd3xvqsf
Wider impacts on cryptocurrencies
Tuesday 25 February 2025 10:48 , Andrew WilliamsWondering about the effects on other cryptocurrencies outside of Ethereum and Bitcoin? Most other major cryptocurrencies have seen significant drops, generally significantly larger ones than those of Bitcoin itself, at least in terms of percentage losses.
Here are the 24-hour drops from some notable cryptocurrencies, per Coin Gecko’s metrics. These are likely to have changed by the time you read this, and stats will be different across sites that provide these nuggets of value data:
- Solana: -12.5%
- Bitcoin: -7.9%
- Ethereum: -9.9%
- XRP: -12.2%
- Dogecoin: -10.9%
- TRUMP: -13.5
Bitcoin drops further, below £70,000
Tuesday 25 February 2025 10:37 , Andrew WilliamsThe value of Bitcoin has taken a further dip after tentative signs of recovery, its value dropping below the £70,000 mark at around 10:30am.
November 15, 2024, was the last time Bitcoin’s value sank this low. Meanwhile, it’s highest value in that period was a little over £86,000 on January 19.
This mean’s Bitcoin’s current valuation is just 81% of its peak over the last couple of months.
A little perspective is called for, though. A year ago, on February 25 2024, Bitcoin was worth “just” £40,000. It may be down, but it is worth the better part of twice what it was this time in 2024.
Citadel Securities puts its faith in crypto
Tuesday 25 February 2025 10:32 , Andrew WilliamsIn news that should help buoy crypto’s recovery, Citadel Securities has plans to get involved in crypto trading, according to Bloomberg.
The finance company, which reportedly had assets of $64 billion late last year, was positioned as a crypto-sceptic thanks to the words of tis founder Ken Griffin.
Griffin has previously called crypto an attack on the U.S. dollar. And as recently as December said he doesn’t see the real value in crypto.
“What I don’t care for about crypto is, what problem does it solve for our economy?” Griffin said in an interview with Fortune. “What problem does it solve?”
Trump’s friendliness to crypto appears to have tipped the finance giant, or at least his company, over the edge. Griffin is owner of both Citadel LLC and Citadel Securities, which are hedge funds and liquidity providers respectively.
$1.3 billion in crypto trading liquidations
Tuesday 25 February 2025 10:11 , Andrew WilliamsAccording to Coinglass, crypto trading position liquidations over the last 24 hours have reached more than $1.3 billion.
$574 million of those trading position liquidations are related to Bitcoin, while — unsurprisingly — Bybit is the most implicated exchange. It accounts for $625 million of the liquidations, across all cryptocurrencies listed.
It’s the biggest spike seen in Coinglass’s tracking system since February 3, a day that saw big crypto drops amid fears of the effects of Trump’s tariff plans. 24-hour liquidations hit $2.2 billion earlier this month, suggesting these latest shocks may not reach the scale of those in early February.
Crypto: The Standard's view
Tuesday 25 February 2025 09:53 , Andrew WilliamsThe Standard’s business editor Jonathan Prynn has written a summary of the situation as we know it so far.
Is this the end of a “bitcoin bubble” that formed after Trump returned to the White House?
It’s certainly starting to look that way. Although in the world of crypto, the bursting of a bubble need not be a barrier to continuing growth. Often within the space of days.
Either way, give it a read for a potted summary on exactly what’s going on in crypto today.
Trump's U.S. neighbour tariffs
Tuesday 25 February 2025 09:45 , Andrew WilliamsOne of the key causes of crypto’s drop in value is an indirect one, Donald Trump’s reaffirmation of plans to levy 25% tariffs on Canada and Mexico.
“The tariffs are going forward on time, on schedule,” Trump said during a press conference, as reported by Euro News.
Trump originally announced plans for these tariffs in November 2024, ahead of his inauguration. They were delayed in early February, after the countries made concessions, promises to improve border security.
Current timescales suggest these tariffs, which would impose 25% charges on all products sent from Canada and Mexico into the United States, will come into force on March 4.
North Korea to blame (again)?
Tuesday 25 February 2025 09:33 , Andrew WilliamsBlockchain company TRM claims North Korean hackers are behind the theft of crypto assets from exchange Bybit.
“TRM has determined - with high confidence - that the Bybit hack was perpetrated by North Korean hackers,” the company says.
TRM says it came to these conclusions after monitoring the accounts sent the stolen Ethereal ands finding “substantial overlaps” in their activity versus accounts previously involved in known thefts by North Korean hackers.
The BBC reported in December 2024 that North Koreans were responsible for more than half the £1.76 billion of crypto thefts in 2024.
Grand theft crypto - £1.19 billion
Tuesday 25 February 2025 09:14 , Andrew WilliamsHackers have reportedly stolen more than £1.1 billion worth of crypto in what is being called the biggest cryptocurrency theft to date.
The Bybit exchange, based in Dubai, was compromised by the hackers, which resulted in the contents of an Etherum wallet being sent to another account.
No group has been identified as the culprit as yet. Bybit CEO Ben Zhou claims the theft was not a result of the hack of its internal systems but a breach of the company’s Safe wallet.
“In the case of yesterday, it was our ETH cold wallet which we use @safe that was breached, it had nothing to do with any of our internal systems so it was easy for me to make the call to maintain all withdraw and system functions of Bybit as usual,” Zhou posted on X.
Investors' Greed & Fear index is in a bad place
Tuesday 25 February 2025 09:01 , Andrew WilliamsCNN Business’s Greed & Fear index is in the red, signifying “extreme fear” from investors. It dropped to a low of 25 points out of 100, although at the time of writing has increased to 28 points.
This sees it shift out of the most dire state and back into simple investor “fear”.
It represents the most tumultuous time in the index’s readings since September 2024.
