The Cryptocurrency Market in the Fear Zone – Market Info

The cryptocurrency market capitalization has dropped by approximately 9% over the past two weeks. At the time of writing, the market capitalization stands at around 2.77 billion EUR. Bitcoin’s dominance, according to Coinmarketcap, is at 60%. The market is experiencing fear, with the Fear and Greed Index falling to 26.

Source: coinmarketcap

Fear in the Crypto Market is Growing: Trump Confirms Continuation of Tariffs

The sentiment in the crypto market has worsened significantly in recent days after U.S. President Donald Trump reaffirmed that the planned tariffs on imports from Canada and Mexico will be implemented as scheduled. The Fear and Greed Index dropped to 21 points between February 24 and 26, signaling significant fear in the market.

source: coinmarketcap

On February 24, during a press conference with French President Emmanuel Macron, Trump announced that the 25% tariffs on Canadian and Mexican products remain in effect and will be implemented according to schedule. Originally introduced on February 1, the tariffs impose a 10% duty on Chinese imports, while Canadian energy receives a 10% tariff exemption. Following this announcement, Bitcoin’s price dropped from $105,000 to approximately $92,900, with a further dip on Wednesday to a local low of $85,500.

Although the market experienced a brief period of stability when Trump agreed to a 30-day tariff delay on February 3 in exchange for enhanced border security measures from Canada and Mexico, he has now reaffirmed that the tariffs will take effect after this period expires at the beginning of next month. The crypto market has previously reacted negatively to tariffs—Bitcoin fell on February 9 after a 25% tariff on aluminum and steel was imposed, and again on February 13 when Trump signed an executive order on broader reciprocal tariffs.

The last time the crypto sentiment index reached an “extreme fear” level (value of 25 or lower) was on September 7 2024, when Bitcoin dropped to $54,000 after a two-day 7% decline. Currently, Bitcoin is trading below $90,000, its lowest value since November 2024. The broader U.S. market also saw a decline—the S&P 500 index fell by 2.3% over the past five days, while the Nasdaq Composite lost 4%. Source

U.S. Bitcoin ETFs Record Record Daily Outflow of $938 Million

Bitcoin ETFs experienced the largest daily capital outflow in history, with investors withdrawing nearly $938 million. This development occurred as Bitcoin’s price fell below $90,000.

According to CoinGlass data, on February 25, nearly $938 million exited 11 different Bitcoin ETF funds, marking the sixth consecutive day of net outflows. This trend follows a 3.4% drop in Bitcoin’s price over the past 24 hours, with its value falling from a daily high of over $92,000 to below $86,000.

The largest outflow was recorded by the Fidelity Wise Origin Bitcoin Fund (FBTC), which saw withdrawals of $344.7 million—a new record. The second-largest outflow was from BlackRock’s iShares Bitcoin Trust (IBIT), with $164.4 million withdrawn. Other funds, such as the Bitwise Bitcoin ETF (BITB), lost $88.3 million, while two Grayscale funds (GBTC and BTC) collectively lost $151.9 million.

source: cointelegraph

In February, investors have already withdrawn approximately $2.4 billion from funds, with net inflows recorded on only four trading days. Some analysts, including BitMEX co-founder Arthur Hayes and 10x Research head of research Markus Thielen, claim that most investors in these funds are hedge funds seeking arbitrage returns rather than long-term Bitcoin holders. Hayes even predicted that if the outflow continues, Bitcoin’s price could fall below $80,000. Source

Nasdaq Applies for Listing of Grayscale Polkadot ETF

Nasdaq has submitted an application to list a new ETF fund from Grayscale, which will be traded under the symbol “DOT.” This fund will provide investors with regulated access to the cryptocurrency Polkadot (DOT) without the need to hold the token directly. The fund aims to track the price of DOT and offer exposure to the performance of one of the leading cryptocurrencies. This move is part of Grayscale’s strategy to capitalize on the growing demand for digital assets while adapting to strict regulations.

The U.S. Securities and Exchange Commission (SEC) has 45 days to review the application and decide on its approval. The outcome remains uncertain, as regulatory bodies continue to scrutinize crypto-related products. In the past, several similar ETF proposals faced resistance, but with the advent of the new Trump administration, the situation could change, potentially allowing multiple altcoin ETFs to gain approval in the coming months.

Grayscale, primarily known for its Bitcoin Trust (GBTC), is thus striving to expand its ETF portfolio with new altcoin ETFs. Experts anticipate that approval of this fund would facilitate investor access to Polkadot (DOT) and increase competition among asset managers. Source

PayPal Expands PYUSD Integration to Accelerate Global Payments

PayPal plans to expand the use of its stablecoin PYUSD in various new products and services by 2025. The goal is to support its adoption through a network of 20 million merchants worldwide. PYUSD is pegged to the U.S. dollar at a 1:1 ratio, ensuring its stability. With this move, PayPal aims to accelerate and simplify crypto payments.

One of the main initiatives is to enable 20 million small and medium-sized businesses to accept PYUSD for invoicing payments. This change could significantly simplify cross-border transactions by eliminating currency conversion costs and fees. PayPal Senior Vice President Michelle Gill emphasized that merchants are looking for fast and cost-effective ways to pay international suppliers.

To support the new system, PayPal will leverage Hyperwallet, a platform acquired in 2018 for $400 million. This platform will facilitate mass payments to freelancers and contract workers, with the service expected to launch in the first half of 2025. PayPal CEO Alex Chriss stated that the true revolution in blockchain payments will occur when cryptocurrencies are widely used in everyday transactions. Source

Singapore Retail Chain Metro to Accept Stablecoin Payments

Leading Singaporean retail chain Metro will allow its customers to pay with stablecoins in physical stores and online. The company has partnered with DTCPAY, a Singapore-based crypto payment service provider, to facilitate payments with stablecoins such as USDT (Tether), USDC (Circle), and WUSD (Worldwide Stablecoin Payment Network). The company also plans to add support for FDUSD (First Digital Dollar Stablecoin) soon.

Metro’s Chief Operating Officer, Erwin Wuysang-Oei, described this partnership as a significant step in adapting to modern retail trends. He emphasized that accepting stablecoins is not just about embracing the future but also shaping it. Metro aims to be a leader in integrating digital assets into customers’ daily lives. Source

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