Crypto Assets market Fluctuation intensifies, Bitcoin falls below 90,000 US dollars raising concerns

Recently, the crypto assets market has experienced a significant fall, with the Bitcoin price dropping to around $88,000, and other crypto assets also declining broadly. Market sentiment has retreated to a low point for 2024, with multiple factors contributing to this round of decline, including stock market pressure, outflows from crypto assets ETFs, security incidents on major trading platforms, and geopolitical tensions.

February 25, 2025, is known as "Black Tuesday" as Bitcoin fell below the psychological barrier of $90,000 for the first time since November 2024, closing at $87,169 with a single-day drop of up to 7.25%. This market decline is not due to a single factor, but rather the result of multiple risk factors converging:

1. Macroeconomic policy pressure: The government announced an increase in tariffs on imported goods, leading to a sharp decline in US bond yields and a global acceleration of capital fleeing risk assets.

2. Impact of security incidents: A large trading platform suffered a theft of $1.5 billion in Ethereum. Although the platform initiated insurance compensation, this incident severely undermined market confidence in centralized exchanges.

3. Continuous outflow of funds: Bitcoin ETF has seen a net outflow for several consecutive days, with single-day outflow hitting a new high, indicating that institutional investors are reassessing their Crypto Assets allocation.

Despite the unclear market outlook in the short term, data from the derivatives market shows that Bitcoin futures set to expire in December 2025 still maintain a premium of $103,000, indicating that institutional investors remain confident in long-term value. Market analysts believe that the Federal Reserve's interest rate meeting in mid-March and the G20 finance ministers' summit may become turning points for the market.

In the current market environment, investors should adopt multiple strategies to protect their assets:

1. Holding Strategy (HODL): Believing in the long-term value of the asset, suitable for long-term investors who can withstand short-term fluctuations.

2. Diversified investment: Diversify asset allocation to reduce the risk brought by the fluctuation of a single asset.

3. Dollar-Cost Averaging (DCA): Regularly investing a fixed amount helps to reduce the average purchase cost amid market fluctuations.

4. Set Stop Loss: Automatically trigger sell orders to effectively control potential losses.

5. Use stablecoins: Convert part of your assets into stablecoins pegged to the US dollar to preserve value and hedge against risk.

6. Participate in staking or yield farming: Earn passive income through DeFi protocols, but evaluate the risks of smart contracts.

7. Risk Management: Adjust the investment portfolio according to individual risk tolerance to ensure decisions align with personal financial situation.

In the context of increasing market uncertainty, investors need to remain vigilant and closely monitor market trends and key economic indicators. By adopting reasonable risk management strategies, investors can mitigate losses in a potential bear market and prepare for future market recovery.