The cryptocurrency market is bleeding on Feb. 28, with the total market capitalization dropping by 6.4% to about $2.65 trillion.<\/p>\n 24-hour performance of large-cap cryptocurrencies. Source: <\/em>Coin360<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n Several concrete factors have contributed to the latest drop in crypto prices, including:<\/p>\n Over $200 billion was wiped off the crypto market in 24 hours as US tariff wars escalated.<\/p>\n<\/li>\n Investors are risk-off amid the continued correlation between US equities and crypto assets.<\/p>\n<\/li>\n Stiff resistance at 50-weekly SMA could stifle recovery efforts.<\/p>\n<\/li>\n<\/ul>\n The crypto market sank deeper during the early Asian trading hours on Feb. 28 and US US tariffs plunged investors into a risk-off mode and boosted demand for the dollar.<\/p>\n Key takeaways:<\/p>\n US President Donald Trump said<\/a> on Feb. 27 that the proposed tariffs on Canada and Mexico will \u201cindeed, go into effect\u201d as scheduled on March 4.\u00a0<\/p>\n<\/li>\n Trump also emphasized that an additional 10% tariff would be imposed on China on top of the already imposed 10%.<\/p>\n<\/li>\n He also added that the April 2 \u201creciprocal tariff date will remain in full force and effect.\u201d\u00a0<\/p>\n<\/li>\n In response, Bitcoin (BTC<\/a>) tumbled below $80,000 for the first time since Nov. 10, dropping as much as 9.5% from a high of $86,988 on Feb. 28 to the current price of $79,400.<\/p>\n<\/li>\n<\/ul>\n The decline in BTC<\/a> triggered panic selling among crypto investors, with most cryptocurrencies<\/a> dropping across the board.<\/p>\n Ether (ETH<\/a>) extended its five-day losses, dipping as low as $2,000 on Feb. 28, marking 10% losses over the last 24 hours.<\/p>\n<\/li>\n XRP (XRP<\/a>), Solana (SOL<\/a>) and BNB (BNB<\/a>) also witnessed significant losses, down 10%, 9% and 10%, respectively.\u00a0<\/p>\n<\/li>\n Dogecoin (DOGE<\/a>) and Cardano (ADA<\/a>) posted the largest daily losses among the top 10 assets by market capitalization, down 11% over the last 24 hours.<\/p>\n<\/li>\n $879 million in leveraged positions were liquidated over the past 24 hours.<\/p>\n<\/li>\n Long BTC leveraged positions totaling $380.5 million have also been liquidated on the day.<\/p>\n<\/li>\n<\/ul>\n Total crypto liquidations. Source: <\/em>CoinGlass<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n This mirrors the more than $1.25 billion long positions liquidated on Feb. 3, which accompanied a 16% drop in TOTAL\u2014the combined market capitalization of all cryptocurrencies\u2014with more than $570 billion being wiped off the crypto market.<\/p>\n<\/li>\n A predominance of long liquidations suggests that the crypto market was overleveraged on the bullish side.\u00a0<\/p>\n<\/li>\n<\/ul>\n The ongoing correction in the crypto market mirrors the weakness witnessed in US equities.\u00a0<\/p>\n Key points:<\/p>\n The S&P 500 dropped by 1.94% to close the day at 5,861.57 on Feb. 27, while the Nasdaq composite index declined by 581 points (-2.75%).\u00a0<\/p>\n<\/li>\n The Dow Jones index clocked its second consecutive daily loss, losing 0.5% to close the trading day on Feb. 27 at 43,239.50.\u00a0<\/p>\n<\/li>\n<\/ul>\n 24-hour performance of US equities Source: <\/em>Financial Visualizations<\/em><\/a><\/p>\n This highlights the growing correlation between crypto assets and US equities, where cryptocurrencies move in tandem with the stock market.<\/p>\n Related: <\/strong><\/em>When will Bitcoin price bottom?<\/strong><\/em><\/a><\/p>\n \u201cFor 10+ years, Bitcoin was viewed as a decentralized hedge against uncertainty, but something changed,\u201d said<\/a> capital markets commentator The Kobeissi Letter in a series of X posts on Feb. 27.<\/p>\n The Kobeissi Letter also pointed out that the crypto markets have erased more than $800 billion since Jan. 20, despite Trump being the most pro-crypto president in history.\u00a0<\/p>\n Source: <\/em>The Kobeissi Letter<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n \u201cThis means that at peak correlation, Bitcoin moved in line with the S&P 500 88% of the time.\u201d<\/p><\/blockquote>\n Today\u2019s drawdown in crypto prices has seen TOTAL\u2014the combined market capitalization of all cryptocurrencies\u2014lose key support provided by the 50 simple moving average (SMA) on the weekly timeframe.\u00a0<\/p>\n Why it matters:<\/p>\n The 50-weekly at $2.58 trillion now acts as an immediate resistance on the upside, adding headwinds to the sell-off.\u00a0<\/p>\n<\/li>\n\n
Bitcoin leads the market slump<\/strong><\/h2>\n
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Risk-off mode in stocks hampers crypto market<\/strong><\/h2>\n
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TOTAL flips 50-weekly SMA into resistance<\/strong><\/h2>\n
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