The CoinEx Research report in February 2025 pointed out that the cryptocurrency market has faced multiple negative factors and has declined significantly, with macroeconomic uncertainty, institutional capital withdrawal, and political turmoil in the meme coin sector forming a "bear market storm". Bit plummeted from a high of $102,000 at the beginning of the month to below $80,000, causing widespread market concerns. This decline was accompanied by an escalation of global tensions, including the Trump administration's new tariff policy, causing ripple effects across the entire digital asset space. The hacking of the Bybit exchange, a black swan event, further deepened the overall negative sentiment. However, the launch of the Berachain and the inflow of stablecoin capital still provide the market with the seeds of a bullish structural foundation.

Dancing with Fear and Bears: Liquidity Depletion Exacerbates the Sell-off

The "Fear and Greed Index" of the market sentiment in February remained in the "Fear" zone, with the cryptocurrency market being dominated by a bearish sentiment. After starting the month at a price of $102,000, Bit broke below the critical $80,000 support, and the depletion of liquidity in the meme coin market became a catalyst - the launch of meme coins such as $REALTRUMP and $MELANIA exacerbated the market's downtrend. In addition, the LIBRA token manipulation scandal (the price plummeted after an initial speculative surge) also dragged down the prices of Eth and Solana ecosystem tokens.

Trump Tariffs Weigh Heavily: Macroeconomic Headwinds Compress the Crypto Market

The plight of the crypto market is closely intertwined with macroeconomic pressures. The Trump administration's new tariff policy has exacerbated trade tensions, and the market is concerned about economic slowdown and potential inflationary pressures. Risk assets will be the first to be affected. Some have pointed out that if the central bank delays rate cuts or even turns to rate hikes, investors will be concerned that volatile assets like Bit will face more severe challenges.

BTC ETF Capital Exodus

In addition to macroeconomic factors, institutional investors have also withdrawn from the cryptocurrency market. In February, the net outflow of Bit ETF products reached $3.5 billion, a record high for a single month since the launch of the ETF. Given the increasing market volatility and uncertainty, this shift, combined with the chaos of meme coins, highlights the increasingly cautious and observant stance of institutional investors.

Market Scenario: Where Do We Go from Here?

Looking ahead, the cryptocurrency market faces several possible scenarios. One possibility is a rebound driven by positive developments in the macroeconomy or specific industries after the significant sell-off in February. If the pessimistic sentiment continues to ferment, Bit may drop to $70,000, a price level not seen since before Trump's election. Another possible scenario is the start of a long-term bear market, with the weekly chart "lower lows" established. Finally, there may be a period of sideways consolidation, allowing the market to enter a new accumulation phase and potentially lay the foundation for more stable support.

The Chaos of Political Meme Coins

In February, a wave of political meme coins swept the market, including tokens for Trump and Melania, as well as the newly launched CAR and LIBRA tokens. The LIBRA token backed by Argentine President Javier Milei initially received widespread attention, but quickly became embroiled in controversy, skyrocketing and then plummeting 80%. Investigations revealed the team's connections to past controversial token projects, triggering a crisis of trust. The ripple effects of LIBRA also severely impacted the Solana ecosystem, leading to a significant price drop in Solana's native assets.

Exchange Security Alarm: Bybit Historically Hacked

The leading centralized cryptocurrency exchange Bybit was attacked by hackers, losing over 490,000 ETH (about $1.5 billion), one of the largest exchange security incidents in history. The stolen funds were laundered through various channels, exacerbating market volatility, with the Eth price plummeting from $2,700 to $2,100. Investor anxiety increased, undermining confidence in centralized exchanges (CEXs) and putting downward pressure on other platforms.

As One Bear Departs, Another Emerges: Berachain Mainnet Launch

Ironically, as the market was mired in a bear market, the Layer 1 blockchain Berachain, developed based on the Cosmos SDK and compatible with Eth, launched its mainnet in the face of adversity. Berachain has listed over 110 projects, with the Royco program pre-depositing $2.6 billion in funds and the TVL surpassing $3.1 billion, quickly climbing to the 6th position in the public chain TVL rankings, demonstrating the resilience of construction in the bear market.

Resilience of Stablecoin Inflows: Bull Market Structure Remains Intact

Despite market challenges, the underlying market liquidity remains stable, with $5 billion in net stablecoin inflows in February, down from $9.9 billion in January. This slowdown is seen as a natural adjustment in a risk-averse environment. The continued stablecoin inflows are following the typical bull market pattern, indicating that the market's fundamental structure remains intact.

Conclusion: A Glimmer of Hope in the Storm

In February 2025, the crypto market is struggling amid the Bitcoin crash, political turmoil, and major security vulnerabilities, but the successful launch of Berachain has kept a spark of hope for investors. Stablecoin inflows remain strong, suggesting that the market may still have sufficient liquidity to weather the storm. As March approaches, the key question is whether the market can find a bottom and rebound, or if it will further plunge into the abyss.

About CoinEx

CoinEx, founded in 2017, is a leading global cryptocurrency exchange incubated by the top mining pool ViaBTC. Adhering to the user-centric principle, CoinEx was the first to adopt the "1:1 reserve proof" mechanism to safeguard user assets. The platform supports over 1,300 cryptocurrencies and serves more than 10 million users in over 200 countries and regions, driven by its platform token CET. CoinEx Research provides in-depth market insights to help investors seize opportunities amid volatility.