Author: Beijing Business Daily reporter Yue Pinyu Dong Hanxuan

Bitcoin has seen a big plunge again. On February 25, the cryptocurrency market fell sharply, and Bitcoin once fell below $90,000, hitting a new low since mid-January. Behind this, US President Trump's tough statement on tariffs on Canada and Mexico, geopolitical tensions, and weakening market momentum are intertwined. It is worth mentioning that in the past 24 hours, nearly 370,000 people around the world have been exposed, with a total amount of liquidated stocks reaching US$1.36 billion. This also means that a large number of speculators walking on tightropes have been washed away.

01 fell below $90,000

The latest data shows that Bitcoin's decline has further expanded. It has come below $89,000. As of 17:30 on February 25, the price of Bitcoin was US$88,701, down 7.7% within 24 hours. A number of cryptocurrencies such as Ethereum, Solana, Dogecoin all fell by more than 10%.

As the price fluctuations are coming, huge market fluctuations. Coinglass data shows that in the past 24 hours, nearly 370,000 people around the world have been exposed, with a total amount of liquidated stocks reaching US$1.36 billion.

On the news, the tough tariffs implemented by Trump have become the main reason for the recent decline in Bitcoin. On February 24 local time, Trump held a joint press conference after talks with visiting French President Macron at the White House. Asked about the upcoming U.S. tariffs on Mexico and Canada, which will be imposed next month, Trump said he is moving forward with the plan and it looks like progress is "very fast."

Trump signed an executive order on the 1st of this month to impose a 25% tariff on products imported from Mexico and Canada, including Canadian energy products The tax increase is 10%. On the 3rd, Trump announced that the implementation of additional tariffs on the two countries was suspended for 30 days and negotiations continued. According to this decision, the relevant tariff measures will come into effect on March 4.

In addition, earlier, the largest theft in history in the currency circle caused cryptocurrency security to be questioned again, resulting in a panic selling by a large number of investors. "The current market decline is obviously related to the interweaving of multiple factors, and the continuous pressure in the short term is very highIt may continue for a while. ” Yu Jianing, co-chair of the Blockchain Committee of the Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association, told Beijing Business Daily reporters.

Yu Jianing also pointed out that the recent range fluctuations in Bitcoin on the technical side also reflect the weakening of market momentum. Since the beginning of February, the price of Bitcoin has been between 90,000 and 100 yuan. The market has not been able to continue to break through this range with strong rises in the previous period. With the pressure of profit-taking and taking off, if confidence is not restored quickly, the price may remain within this range, or even appear The possibility of a downward breakthrough.

However, Yu Jianing's view is that the current downward trend is likely to be a technical adjustment rather than a long-term trend reversal. In the medium and long term, Bitcoin price is expected to re-enter the upward channel after experiencing the current adjustment. The funds that ETFs continue to attract Inflows, strategic allocation of institutional investors, and potential macroeconomic catalysts including Fed rate cut expectations may drive prices back.

02‍Regulatory attitudes are significantly differentiated

Another news related to cryptocurrencies has also attracted market attention in recent days. Members of the South Dakota Legislature have postponed a possible allow the state to invest in bits voting for coins, which actually killed the bill.

Although Trump had a high-profile claim when he ran for president that he would push Bitcoin to become a "strategic reserve asset", now there are major differences in attitudes on this matter within the United States. Although many states have proposed to establish The bill on Bitcoin strategic reserves has also been rejected by Montana and other states.

Turning its attention to the world, the attitudes of regulators in various countries towards cryptocurrencies are also differentiated. Obviously. For example, the ECB is strongly opposed to the inclusion of Bitcoin in reserves. However, the Czech Bank is evaluating the possibility of placing 5% of the reserves on the grounds that its low correlation with traditional assets can enhance diversification.

Some people have high expectations for Bitcoin to "digital gold", while others are concerned about its high risks. Overall, countries have different understandings and emphasis on the nature of virtual assets, as well as their differences in financial stability, innovation potential and capital flows Balanced considerations determine the differentiated positioning of Bitcoin. Developed economies generally adopt a cautious regulatory route, while Asian regions show extreme contrast, Japan andSingapore is moving towards institutionalized acceptance, and Hong Kong vigorously develops the virtual asset industry. "Overall, strict and loose supervision directly affects the development space and innovation momentum of the virtual asset market, but at another level it has also aggravated the problem of risk control." Yu Jianing said.

It is worth noting that the concept of Bitcoin as a strategic reserve is theoretically attractive, especially its scarcity and decentralized characteristics make it It has been used to hedge inflation and instability in the financial system. However, there are still many risks and obstacles in practice, including the price volatility of Bitcoin making its value unpredictable in the short term; the global financial system has different regulatory attitudes towards Bitcoin, and many legal frameworks have not yet fully adapted to virtual assets. International coordination and consensus have also become a major obstacle.

Yu Jianing predicts that in addition to the United States' new leadership that may accelerate the promotion of Bitcoin reserve-related bills, some regions have implemented Bitcoin as a The possibility of strategic reserves is relatively high, especially those who have experienced high inflation, currency depreciation or financial crises, which may tend to consider Bitcoin as a reserve asset.

For example, El Salvador, as the first in the world to use Bitcoin as a fiat currency, insists on buying Bitcoin for reserves despite external pressure. Others such as Argentina and Venezuela have long been troubled by high inflation and currency depreciation, and may also be more open to Bitcoin and consider using it as an alternative to stabilizing foreign exchange reserves. In addition, some economies with strong sense of financial innovation, such as some Middle East, especially those with abundant oil resources, may also consider using Bitcoin as a new type of strategic reserve asset.