Bitcoin plunged below the $88,000 mark on February 25, 2025, sending shockwaves through the crypto market. The 9% drop on Tuesday left the leading cryptocurrency trading at $89,400, its lowest level since November 2024. Not exactly the moon shot evangelists had promised.
The global crypto market cap shed 2.9% in 24 hours, landing at $3.27 trillion, with Bitcoin’s dominance holding at 60.1%.
Analysts aren’t rushing to call this a buying opportunity. Standard Chartered is waving caution flags, predicting potential moves to the “low 80s.” Arthur Hayes went further, suggesting $70,000 might be in the cards. JPMorgan points to anemic demand from both retail and institutional investors. No new narrative, no new money. Simple math.
Market sentiment cooling as analysts forecast Bitcoin’s continued slide amid institutional disinterest. No catalyst, no cash flow.
ETF outflows tell the ugly story. Over $1 billion fled Bitcoin ETFs in the last trading week, with Monday alone accounting for $500 million. Average purchase price for ETF buyers since November? A painful $96,500. Those underwater positions aren’t helping sentiment. With day trader statistics showing only 3% profitability in their first year, many newcomers may exit the market entirely.
The Federal Reserve’s policy moves have Bitcoin dancing to a different tune. Institutional investors are taking profits or cutting losses, creating a snowball effect that’s dragging prices lower. This dramatic fall from its previous record high of approximately $109,000 last month illustrates the volatile nature of cryptocurrency investments. Crypto-linked stocks are sinking in pre-market trading. No surprise there.
Technically speaking, Bitcoin’s been trading in a narrow range for weeks. Support at $90,000 just crumbled like a cookie in milk. The next level to watch? Nobody knows. That’s the fun part.
Despite the current bloodbath, long-term projections remain oddly optimistic. Standard Chartered still sees $200,000 in 2025, with some analysts projecting $500,000 by the end of the next presidential term. The $1.5 billion hack of ByBit contributed significantly to the recent price decline.
Meanwhile, BlackRock’s IBIT ETF manages $41 billion in assets, and total U.S. spot Bitcoin ETF inflows stand at $35.41 billion. Corporate adoption continues with MicroStrategy holding 478,740 bitcoins.
The million-dollar question: temporary dip or beginning of winter? Only time will tell. Buckle up.
