Bitcoin selloff speeds up – First crypto panic since November 2024
Last Updated on 26 February 2025 by CryptoTips.eu
Let’s be honest here, before November 2024 and Donald Trump’s victory in the US presidential election, any report of Bitcoin trading ‘below’ $90,000 wouldn’t even be possible, hence a drop in price below that level again was always in the books. The question is simply how deep we go and whether this is natural or somehow controlled by the larger market players (as some claim).
ETF
According to many market commentators, the decline is driven by the fact that there is no news about a possible American ‘Strategic Bitcoin Reserve’ and that law proposals to that effect did not pass the House of Representatives in the states of South Dakota and Montana.
Bitcoin is now down over 20%, an official bear market. So much for a U.S. Strategic Reserve. Establishing one now would look like a Bitcoin Bailout Fund. Trump needs to distance himself from Bitcoin so as not to be associated with its demise. Trump likes winners, not losers.
— Peter Schiff (@PeterSchiff) February 25, 2025
As a result, investors increasingly fear that Donald Trump’s political promises to the crypto world will mainly remain promises instead of real plans that would be realized in the future.
Crypto-related stocks such as Strategy and Coinbase also suffered heavy losses.
Whales
The sale of Bitcoins by the many ETF funds that are clearly cashing a part of their profits also has a negative impact on the emotions of small investors.
Given Bitcoin’s past, we will soon enter a moment of ‘panic’ where Whales will snap up Bitcoin ‘on the cheap’ just as smaller investors will sell in a rush.
Commentators claim there is a very strong support line for Bitcoin at around the $75,000 mark although it is unclear whether we’ll go that low.
The lowest point recorded so far for Bitcoin was $86k.
