While Bitcoin enthusiasts were celebrating the cryptocurrency’s two-week dance between $94,000 and $100,000, their party came to an abrupt halt on February 19, 2025. Bitcoin plunged below $94,000, marking a stark 4.2% decline from its earlier high of $98,000, with the digital asset hitting a low of $93,950 at 14:32 UTC. The decline was largely attributed to rising bond yields which diminished the cryptocurrency’s appeal as an investment.
Bitcoin’s wild ride hits a sobering speed bump as prices crash below $94,000, dampening the bullish festivities.
The drop triggered a massive liquidation event just three minutes later, when address 0xceef…ba42 was forced to liquidate approximately 150 WBTC, valued at around $14 million. So much for diamond hands. The ripple effect was immediate and brutal, sending the total crypto market cap tumbling by 3.5% in a single hour, from $2.3 trillion to $2.22 trillion. Recent regulatory scrutiny has further intensified market pressure, contributing to the widespread sell-off. The supply and demand dynamics played a crucial role as panic selling overwhelmed buyer support levels.
Trading volumes exploded as panic spread through the markets. Bitcoin’s trading volume surged an eye-popping 180% to $45 billion, while WBTC transactions jumped 15% to 4,500 per hour. Meanwhile, Ethereum managed to squeeze out a 0.8% gain against WBTC, climbing to $3,800 – talk about swimming against the tide.
The broader economic landscape wasn’t doing Bitcoin any favors. Rising bond yields, a strengthening U.S. dollar, and looming macroeconomic uncertainties – including tariffs, debt ceiling debates, and inflation concerns – all contributed to the downward pressure. Bitcoin’s correlation with traditional equities remained stubbornly intact, much to the chagrin of “digital gold” proponents.
Institutional players showed mixed reactions. While U.S. spot Bitcoin ETFs experienced $580 million in net outflows, some heavy hitters doubled down. Wisconsin state doubled its IBIT holdings to 6.1 million shares, and Tudor Investment Corp boosted its position to 8 million shares. The Abu Dhabi sovereign wealth fund maintained its cool, holding steady with $437 million in IBIT.
Despite the dramatic drop, some analysts maintained their bullish $500,000 BTC projections for 2028. Though with Bitcoin trading below its 50-day moving average of $96,500, others warned of a potential decline to $90,000. One thing’s certain: crypto’s wild ride isn’t over yet.
