25.02.2025 12:11
Bitcoin fell to $89,407 on February 25, 2025, the lowest level in the last three months. After reaching a record high of $109,000 in January, BTC is under pressure due to the Trump administration's crypto policies and institutional sales. Experts are indicating a range of $85,000 to $95,000 in the short term.
The flagship of the cryptocurrency market, Bitcoin, has experienced a fearful decline to the level of $89,000 after reaching an all-time high of $109,000. The management change at the SEC and the exit of institutional investors from the market amounting to $1.18 billion are highlighted as the main reasons for this sharp correction. While technical indicators suggest that Bitcoin could consolidate in the $84,000 to $92,000 range, experts agree that the 200-day moving average will provide an unbreakable support.
Bitcoin Experienced a Sharp Decline After the Record
The leading cryptocurrency Bitcoin fell to $89,407 on February 25, 2025, surprising investors. This decline marks the lowest value in the last three months and is considered a technical adjustment following the upward trend captured in the last quarter of 2024. Especially after Bitcoin surpassed $109,000 to reach an all-time high on January 20, 2025, this pullback is causing concern among market participants.
The management change at the U.S. Securities and Exchange Commission (SEC) is believed to have influenced this decline. Following Gary Gensler's term ending on January 20, 2025, the appointment of former commissioner Paul Atkins, known for his crypto-friendly policies, as interim chairman has increased uncertainty in the markets. This appointment, which aligns with the Trump administration's support for blockchain technology, has raised expectations that the SEC will reevaluate the Coinbase and Ripple cases. While Atkins' confirmation process in the Senate Banking Committee continues, the crypto task force led by Hester Peirce is playing an active role in shaping sector policies.
Bitcoin's drop below the 50-day moving average ($98,933) indicates a loss of short-term momentum. According to technical analysts' Fibonacci retracement analysis, the first support level for the cryptocurrency is at $87,110 (23.6%), and the second support level is at $84,660 (50-day EMA). The RSI indicator hovering at the neutral zone of 42 suggests that selling pressure may continue, but oversold conditions have not yet formed. Market participants believe that a consolidation period is underway to test whether the 200-day EMA ($81,336) will provide solid support.
On the institutional front, mixed signals are noteworthy. While Strategy continues to maintain its massive portfolio of 450,000 BTC, the exit of other institutional investors amounting to $1.18 billion in the last three weeks is putting pressure on liquidity. JPMorgan analysts warn that uncertainty in the Federal Reserve's (Fed) inflation-fighting policies could trigger short-term fluctuations, while Bloomberg Intelligence strategist Mike McGlone describes this decline as a "healthy correction" with a more optimistic outlook.
Global developments are also affecting Bitcoin prices. The UK's plans for blockchain-based digital bond issuance and China's efforts to strengthen the digital yuan on the international stage are emerging as factors accelerating the adoption of crypto assets. Technologically, the increase in the capacity of the Lightning Network and the widespread adoption of Taproot applications are strengthening Bitcoin's infrastructure. In light of these developments, investors are closely monitoring inflation data and changes in the regulatory framework.
Bitcoin's decline to the $89,000 level strengthens the possibility of a horizontal movement in the $84,000 to $92,000 range from a technical perspective. Market experts have reached a consensus that the 200-day EMA ($81,336) will serve as an unbreakable support. Factors that investors should carefully monitor include U.S. inflation figures, the Fed's interest rate decisions, Bitcoin acquisition strategies of companies like Strategy, and technological innovations. While target estimates for 2025 in the range of $150,000 to $200,000 are still considered realistic, volatility is expected in the short term around the $85,000 to $95,000 levels.