Bitcoin Dips to $90K – Is the Market Crashing or Just a Temporary Pullback?
Bitcoin (BTC) has fallen below $90,000 due to economic uncertainty and geopolitical tensions. The drop was caused by former US President Donald Trump’s announcement of 25% tariffs on Canada and Mexico, which raised concerns about economic stability and led to a sell-off in the crypto market.
Bitcoin reached a low of $86,300, indicating increased volatility. The broader crypto market lost $230 billion, showing caution among investors. In addition, $508 million was withdrawn from crypto funds, reflecting growing skepticism.
Altcoins, including XRP, continued to decline, and Bybit’s recent security breach further eroded market confidence.
Positive Developments Yet to Support BTC
Despite the market downturn, positive developments have emerged in the cryptocurrency sector. The US Securities and Exchange Commission (SEC) has dropped its lawsuit against Coinbase, indicating a more favorable regulatory stance. This decision is seen as a step towards clearer crypto regulations.
Meanwhile, Michael Saylor’s investment strategy, formerly known as MicroStrategy, continues to accumulate Bitcoin. The company acquired 20,365 BTC for approximately $2 billion at an average price of $97,514.
This purchase increased the company’s total Bitcoin holdings to 499,096 BTC, valued at $33.1 billion. The firm plans to further expand its holdings through its “21/21” plan, allocating $42 billion for Bitcoin acquisitions over the next three years.
SEC drops Coinbase lawsuit, signaling a shift towards clearer crypto regulations.
Saylor’s firm buys 20,365 BTC, increasing total holdings to 499,096 BTC.
$42B Bitcoin investment plan aims for further expansion over three years.
Institutional Confidence Remains Despite Market Drop
Despite the recent downturn, institutional interest in Bitcoin remains strong. BlackRock increased its stake in Strategy to 5%, demonstrating continued confidence in Bitcoin as a long-term investment.
However, Bitcoin’s value has decreased by nearly 10% in the past month, influenced by political uncertainty and changing investor sentiment.
On the political front, Trump expressed support for cryptocurrency, advocating for regulatory clarity and proposing the formation of a crypto advisory group.
Michael Saylor, a prominent Bitcoin advocate, expressed willingness to advise the Trump administration on digital asset policy.
These proposed policies could create a more favorable environment for Bitcoin and drive wider adoption of crypto in the US.
Bitcoin (BTC/USD) Technical Outlook – February 25, 2025
Bitcoin (BTC/USD) continues to decline, currently trading at $89,100, down 7% in the last 24 hours. The sharp drop occurred as Bitcoin broke below the critical support level of $92,300, triggering a sell-off that pushed the price to an intraday low of $89,000. This also confirmed a break below the 50 EMA at $94,500, indicating ongoing selling pressure.
Immediate resistance now lies at $92,300, which previously acted as support. A break above this level could target the next resistance at $94,500, aligning with the 50 EMA. However, Bitcoin must reclaim $96,800 to negate the bearish bias and regain bullish momentum.
On the other hand, the next support level is at $86,400, with further downside risks towards $83,900 and $81,500 if selling pressure persists.
The overall technical outlook remains bearish as long as BTC trades below the 50 EMA and the descending trendline. The breakdown below $92,300 has opened the door for further downside, making the $86,400 support crucial. A break below this level could accelerate the sell-off towards the $81,500 zone.
Key Insights:
Immediate Resistance: $92,300; break above targets $94,500 and $96,800.
Immediate Support: $86,400; break below could target $83,900 and $81,500.
Bearish Momentum: Sustained below the 50 EMA and descending trendline.
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