S Poddar
Bitcoin has dropped below $90,000, its lowest level since mid-November, as increased volatility rocks the cryptocurrency market.
Bitcoin and Ether Experience Steep Falls
The cryptocurrency market is experiencing a bumpy time, with Bitcoin falling around 8% over the last 24 hours to around $88,000. This represents a 6% fall since the start of 2025, after reaching a record high of $109,000 towards the end of last year. Ether, the native token of the Ethereum network, has also experienced a sharp drop of 10% over the same period.
The downturn follows a humongous security breach, the biggest digital heist ever, in which hackers extracted $1.5 billion worth of Ether from the Dubai-based cryptocurrency exchange, Bybit. The breach has shaken investor confidence, further stressing the industry.
Kathleen Brooks, research director at XTB, attributes the decline to increased market volatility, stating, “Bitcoin is sharply lower and has fallen below $90,000, a clear indication that the current environment of rising volatility is not conducive to cryptocurrency gains.”
Investor mood has also been impacted by economic uncertainties within the United States, as Wall Street has faced successive days of decline. Also, speculations about the policies of the newly installed Trump administration have been among the factors fueling market volatility. Naeem Aslam, Zaye Capital Markets’ chief investment officer, noted, “Since President Donald Trump’s inauguration in January 2025, Bitcoin has seen a dramatic fall of more than 13%, down from $106,000 to $92,000.”
Aslam also noted that previous expectations of a more crypto-positive U.S. administration failed to materialize. “Trump was supposed to bring a crypto-friendly attitude, but the actuality seems to be quite different. Geopolitical tensions, economic volatility, and unpredictable policy swings have contributed to Bitcoin’s downwards move,” he further added.
Tesla’s Sales Plummet Across Europe
Tesla has seen a sharp decline in sales throughout Europe, which is an indication of changing consumer tastes and outside market forces. In January, the automaker sold 9,945 cars throughout the continent, down 45% from last year’s 18,161 sales. Tesla’s market share has since fallen from 1.8% to only 1%.
Industry experts have indicated that the erosion could have been caused by intensifying rivalry in the electric car space and Elon Musk’s growing foray into politics. The European Automobile Manufacturers’ Association (ACEA) has indicated that the slowing of Tesla sales is in contrast to the overall expansion of electric vehicle use in the region.
UK Defence Stocks Rise as Spending Increases
While some sectors struggle, UK defence companies have seen a boost in stock prices, following increased government spending commitments. This surge follows discussions about strengthening European security independently of the United States.
Khem Rogaly, a senior fellow at think tank Common Wealth, was doubtful about the need for further military spending. “The U.S. pivot on Ukraine has provided a chance to cooperate on European security without depending on U.S. assistance. Rather than increase spending, the UK should look at reframing the existing budgets, which are already large relative to historical norms,” he contended.
Rogaly added that true security should be based on economic stability, home-based investments, and strong public services and not on increased military expenditures. “The British military are already committed in the Middle East, Indo-Pacific, and Europe. Further rising spending seems to line the pockets of defence contractors rather than enhancing national security,” he said.
BP Announces Significant Kirkuk Oil Field Redevelopment
BP is taking a strategic step by going back to its roots, as it has signed an agreement to redevelop Iraq’s Kirkuk oil and gas fields. The deal, as reported by Iraq’s state news agency, is likely to include investments of as much as $25 billion over the life of the project.
The agreement is timed to be advantageous for BP at this juncture, given the company is under intense pressure from activist hedge fund Elliott Investment Management. The latter has built a stake with a value of close to £3.8 billion (some 5% of BP’s shares) and is likely to advocate major restructuring, possibly even a company break-up, considering the erosion in BP’s market value in the last two years.
Industry experts point out that the step may prove to be a turning point for both BP and Iraq, which has endured decades of turmoil impacting its oil production. The deal indicates BP’s interest in long-term investment in a region full of resources but previously plagued by political and economic unrest.
Looking Ahead
As the financial markets ride out continuing economic and geopolitical changes, cryptocurrencies, the electric vehicle space, and energy industries continue to respond dynamically. As Bitcoin wrestles to come back to a place of stability, Tesla confronts falling European sales, and BP makes calculated decisions, investors are preparing to see what next month will bring.
The crypto space is particularly precarious, with investment mood influenced by anything from central government policies to threats of hacking. Traditional industries like oil and defense, by contrast, do not seem to be lagging behind, as they position themselves for growth tomorrow even in spite of international uncertainties.
