Bitcoin plunged below the critical $85,000 threshold on February 27, 2025, sending shockwaves through the crypto market. The world’s largest cryptocurrency touched an intraday low of nearly $83,000 before slightly recovering. This marks a staggering 20% decline from January’s peak of $109,350. Brutal. Nearly $300 billion in market value—gone.
Bitcoin’s brutal 20% crash from $109K to $83K wiped out nearly $300 billion in value overnight. Crypto carnage at its finest.
The sell-off wasn’t subtle. Over 79,000 BTC changed hands at a loss in just 24 hours. That’s panic selling, folks. The causes? A perfect storm. ETF outflows hit record levels with nearly $938 million withdrawn on February 25 alone. Trump’s EU tariff threats didn’t help. Neither did the massive ByBit hack. And let’s not forget Nvidia’s pending earnings making tech stocks nervous.
Liquidations made everything worse. Over $4 billion in crypto positions wiped out, with $1 billion in long positions evaporating across exchanges. Ouch. The bloodbath wasn’t limited to Bitcoin either. Ethereum dropped 6.44% to $2,330, while Cardano fell 5.4%. The global crypto market cap shrunk to $2.79 trillion—almost $1 trillion below December’s peak. So much for “to the moon.”
Experts are split. Some call it a bear phase; others see a buying opportunity. Avinash Shekhar from Pi42 thinks Bitcoin could drop to $74K. Ryan Lee at Bitget Research points to $85,000-$90,000 as the make-or-break support zone. Anish Jain emphasizes that macroeconomic factors are heavily influencing current market cycles. Some senior analysts even suggest $70K isn’t out of the question. Not exactly confidence-inspiring. Geoff Kendrick’s analysis suggests deeper losses could be imminent if Bitcoin breaks critical support levels.
The institutional exodus is real. Major US hedge funds are ditching Bitcoin ETFs, with weekly outflows approaching $1.5 billion. The mood has shifted. Fast.
What’s next? Bitcoin needs to reclaim $90K quickly to stop the bleeding. If it breaks below $80K? More pain coming. Some analysts frame this as a “healthy reset.” Really? Tell that to investors watching their portfolios shrink. Exchange reserves have hit six-year lows with only 2.35 million bitcoins (12% of total supply) held on trading platforms.
The market fundamentals might be strong long-term, but right now, it’s carnage. Plain and simple.
