Crypto turn to risk-off – Bitcoin corrects 20% since top

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Last Updated on 27 February 2025 by CryptoTips.eu

In the world of tech stocks, a drop of 10% is usually seen as a correction, for Bitcoin a drop of 20% is used as the benchmark. Ever since Donald Trump’s first day in office, when Bitcoin was trading at around $105,000, the largest of the cryptocurrencies has already fallen by around 20%, meaning we saw a correction for the first time in a long time this week. Meanwhile, global stock markets appear to be going risk-off due to geopolitical uncertainty.

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Correction

Not since November 2024 has Bitcoin traded below $90,000, therefore it was understandable that we saw a slight panic on the crypto exchanges this week. Of course, that fall also came just after the weekend in which President Donald Trump once again threatened with import tariffs (this time on the EU), in which the United States sided with Russia during an important UN resolution vote and in which Ukraine was asked to give up its minerals while European countries realized that they would have to invest more in defense in the future.

All this geopolitical turmoil resulted in investors who briefly seemed to take their risk money off the table. Technology stocks, which usually trade in correlation with Bitcoin, fell earlier this week.

Fears of rising inflation are also causing investors to take a step back.

“On the surface, this is about weak data and the uncertainty stemming from the Trump administration’s policy agenda and how that may impact economic activity,” Kyle Rodd, a senior market analyst at Compital Australia, explained. 

Support

In the following days, it will be especially important to see where the support line for Bitcoin is. According to analysts, many Whales are lurking if Bitcoin were to fall to the $75,000 point in the coming days. That would mean a further decline of some 15%.

Among the altcoins, the decline of Dogecoin is particularly striking. It has already lost some 50% since the temporary peak in November. The mostly negative news about ‘Doge’ in the press (the department led by Elon Musk that currently seems to mainly be firing civil servants) may be correlated with this.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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