Bitcoin Plunges Amid Global Economic Uncertainty

Bitcoin is currently undergoing a significant correction, falling below the $86,000 mark. This comes amid economic turmoil triggered by the announcement of new tariffs by U.S. President Donald Trump. This drop marks a turning point for the cryptocurrency market, which has been facing increasing pressure in recent days. The future of BTC is now more uncertain than ever.

Bitcoin: a sharp drop accentuated by economic uncertainty

Bitcoin is facing a correction below $90,000, with a risk of falling to $81,000. A level that the crypto queen has not seen since November 2024. On February 26, 2025, the Fear & Greed index plunged to a level of 10, signaling an “extreme fear” state. This sudden drop contrasts with the previous day when the indicator was still in “extreme greed” territory, a sign of an euphoric market.

One of the main triggers of this panic was the announcement by President Donald Trump, stating that he would impose a 25% tariff on imports from the European Union. This statement adds to a prior announcement regarding similar taxes on Canada and Mexico, which had already caused a decline in global financial markets.

An anticipated drop… but an uncertain future

The recent drop of Bitcoin below $90,000 had been surprisingly anticipated four years ago. Indeed, Changpeng Zhao, former CEO of Binance, predicted this scenario since December 2020. According to him, BTC was set to reach a key level of $101,000 before dropping to $85,000. A prediction that has proven to be very accurate.

Analysts remain divided on the short-term future of Bitcoin. Some believe a rebound is possible if the geopolitical situation stabilizes, while others fear an extension of the bearish trend. The reactions from the EU will be crucial for BTC’s trajectory in the coming weeks. As Ryan Lee, Chief Analyst at Bitget, thinks:

Although Bitcoin’s historical resilience and Trump’s pro-crypto policies suggest that this could be a temporary correction […] the market trajectory will depend on the EU’s response and the global economic repercussions, which will help determine whether this decline is temporary or marks the beginning of a sustained slowdown.

The drop of BTC below $90,000 thus reflects the impact of economic uncertainties and the visionary predictions of Changpeng Zhao. Between extreme fear and hopes of a rebound, the future of Bitcoin remains unclear. The choices of the FED and geopolitics will dictate whether this correction is just a temporary blip.