Bitcoin Drops Below $90K as Crypto Market Faces Broad Sell-Off
The crypto market is experiencing a sharp pullback, with Bitcoin sliding below $90,000 for the first time since mid-November 2024.
As of February 25, 2025, Bitcoin hit a low of $86,805, marking a steep decline from its record high above $100,000 reached earlier in the Trump administration.
Key Market Movements:
Bitcoin: Dropped below $90K, touching $86,805 (-13% from recent highs).
Ethereum: Down 8-10% in the last 48 hours.
Solana & Dogecoin: Plunged ~20% amid broader risk-off sentiment.
What’s causing this sell-off, and where does Bitcoin go from here? Let’s break it down.
Why Is Bitcoin Dropping? The Key Factors Behind the Sell-Off
Fallout from the Bybit Hack ($1.5B Stolen)
Bybit suffered one of the largest crypto hacks in history, losing up to $1.5 billion in Ethereum on February 21.
Whale panic – Some large holders likely liquidated BTC to cover losses or reduce risk.
Market confidence shaken – Traders are cautious about security risks, leading to withdrawals.
“Bybit’s $1.5B hack has traders rethinking their exposure to centralized exchanges. BTC dip inevitable.”
Hacks like this often trigger short-term selling, but market confidence usually recovers over time.
Economic Concerns & Tariff Fears
U.S. economic reports have disappointed – Lower-than-expected GDP growth and consumer spending data spooked investors.
Trump administration’s new tariff policies on China and Europe are fueling global uncertainty.
Risk-off sentiment is rising, affecting Bitcoin and equities alike.
“Markets are nervous about tariffs + slow growth. Bitcoin feels the heat along with tech stocks.”
If the macroeconomic outlook worsens, Bitcoin could see further pressure as investors seek safer assets.
Profit-Taking After Bitcoin’s $100K High
Bitcoin hit an all-time high above $100,000 earlier in 2025, and some investors locked in gains.
Whales moving BTC to exchanges suggests large-scale selling.
Overleveraged long positions got liquidated, accelerating the drop.
Bitcoin Liquidations (Feb 24-25, 2025)
- $872M in long liquidations across major exchanges.
- Largest single liquidation: A $38M BTC long on Binance.
“Too many traders were betting on $120K BTC. Leverage wiped them out.”
Bull runs always face corrections—this could be a healthy reset before the next leg up.
How Are Altcoins Holding Up? (Spoiler: Not Well)
Ethereum (ETH):
Dropped 8-10%, now trading near $2,650.
Liquid staking withdrawals increased, adding short-term sell pressure.
Solana (SOL):
Tanked ~20% to $110-$115 range.
Whale transfers of $127M in SOL suggest further downside.
Dogecoin (DOGE):
Fell ~20%, mirroring the broader memecoin sell-off.
Elon Musk’s X-related token plans may be shifting attention away from DOGE.
“Bitcoin is dipping, but alts are getting crushed. Typical risk-off reaction.”
Altcoins often drop harder than Bitcoin in market corrections—but also rebound faster.
Will Bitcoin Recover? Short-Term vs. Long-Term Outlook
Bearish Case for Bitcoin
❌ If macro uncertainty continues, BTC could test the $80K-$82K range.
❌ Another wave of liquidations could push BTC even lower.
❌ Regulatory concerns (Tether scrutiny, stablecoin laws) remain a wildcard.
Bullish Case for Bitcoin
✅ Institutional adoption remains strong—ETF inflows still positive.
✅ On-chain data shows long-term holders are accumulating.
✅ Previous corrections have always led to new highs in long-term cycles.
Key Bitcoin Price Levels to Watch
| Support Level | Resistance Level |
|---|---|
| $85,000 – Strong short-term support | $90,000 – Psychological barrier |
| $80,000 – Next major support if selling continues | $95,000+ – Bullish breakout zone |
“BTC needs to reclaim $90K quickly or risk testing $80K.”
Traders should watch for whale accumulation signals and ETF inflows as recovery indicators.
Final Thoughts: Buy the Dip or More Downside Ahead?
Bullish Case:
✔ Institutional money still flowing into Bitcoin ETFs.
✔ Bitcoin historically rebounds after corrections.
✔ Macro trends could shift back in BTC’s favor.
Bearish Case:
❌ Economic uncertainty could keep BTC under pressure.
❌ Further liquidations might push Bitcoin toward $80K.
❌ Altcoins could drag BTC lower if sell-offs continue.
What’s Your Take?
Is Bitcoin about to bounce back, or are we heading for $80K? Drop your thoughts below!
