Author
Steve Muchoki
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Key Notes
- Bitcoin price is likely to drop further in the near term amid the US-led tariff wars.
- The 2025 crypto bull rally will likely continue once BTC price establishes a solid bottom for the ongoing correction.
After struggling to maintain a crucial support level above $95.5K, Bitcoin BTC $87 429 24h volatility: 0.1% Market cap: $1.74 T Vol. 24h: $21.40 B price slipped more than 7 percent in the past two days to reach as low as $87.7K on some centralized exchanges. Having breached a major support level of around $91k in the past 24 hours, Bitcoin price has been retesting a weak liquidity level of around $89.3K, which will likely give way.
From a technical analysis standpoint, if Bitcoin price consistently closes below $91k in the coming weeks, a reversal pattern – characterized by double tops around $108K coupled with bearish divergence of the Relative Strength Index (RSI) – will be confirmed. In such a scenario, a potential drop towards the next major support level of around $77k will be inevitable.
Bitcoin Price Drop Causes Heavy Crypto Liquidations
Following the heightened Bitcoin volatility, the fear of further crypto selloffs emboldened the short sellers in the past 24 hours. Consequently, more than $1.3 billion was liquidated from the entire crypto market, mostly involving long traders on BTC and Ether markets.
As of this writing, more than 362K traders were liquidated in the past 24 hours, with the largest single liquidation order happening on Binance involving $20 million of BTC/USDT.
Whale Investors Flee the Market
With more than 87 percent of Bitcoin holders in profit according to IntoTheBlock, on-chain data shows more whale investors have accelerated profit-taking to protect their capital. In the past seven days, the overall supply of BTC on centralized exchanges increased by about 17,185 coins, thus a total of 2.22 million.
The demand for the US spot BTC ETFs has significantly declined in the past three weeks, with the net cash outflow on Monday being about $516 million, led by BlackRock’s IBIT and Fidelity’s FBTC.
However, Strategy (NASDAQ: MSTR) has continued with its BTC accumulation strategy in addition to El Salvador and Metaplanet Inc. Earlier today, Metaplanet announced the acquisition of 135 BTCs for $13 million, thus currently holding 2,235 Bitcoins.
Metaplanet has acquired 135 BTC for ~$13 million at ~$96,185 per bitcoin and has achieved BTC Yield of 23.2% YTD 2025. As of 2/25/2025, we hold 2235 $BTC acquired for ~$182.9 million at ~81,834 per bitcoin. pic.twitter.com/IxCCvR0zWC
— Simon Gerovich (@gerovich) February 25, 2025
Is the 2025 Bull Cycle Over?
The 2024/2025 crypto bull cycle has heavily been complicated by the entrance of more institutional investors, nation-states, and complex regulatory frameworks. As a result, the crypto market has heavily been impacted by geopolitical tensions, especially escalated by the US tariff wars, which President Donald Trump declared will move forward on time.
The short-term macroeconomic uncertainty will heavily impact the global supply chain, and in turn, negatively affect the Bitcoin demand. Consequently, more institutional investors and central banks have been fleeing to the Gold market, which has recorded a new weekly all-time high (ATH) since the beginning of this year.
Ultimately, the highly anticipated crypto parabolic rally in 2025 will be triggered by the return of whale investors and the potential inclusion of BTC in the US Sovereign Wealth Fund. From a technical standpoint, the end of the four-year BTC bull cycle is marked by the monthly RSI rallying above 90%, which has not happened in the past two years.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Editor-in-Chief
Julia Sakovich
