The crypto market is in disarray following a dramatic decline in Bitcoin, losing more than 20% from its high of $109,350 in January. Bitcoin fell to an intraday low of $83,000 on Thursday, February 27, before rebounding to $85,000. This sell-off erased almost $300 billion from the market value, raising fears of an impending bear market.
Avinash Shekhar, Co-Founder and CEO of Pi42, described this as the biggest sell-off of 2025. More than 79,000 BTC were sold short within 24 hours, he observed. Shekhar put the fall down to a mixture of factors such as ETF outflows and tensions geopolitically. “The crypto market has entered a bear phase with Bitcoin declining over 20% from its January peak of $109,350 to an intraday low of $83,740. ETF outflows and Trump’s EU tariff threats have further pressured the market, and BTC could experience a potential drop to $74K,” Shekhar warned.
The sell-off has not been confined to Bitcoin. Altcoins have also suffered, with XRP’s open interest hitting its lowest point this year. Institutional selling and macroeconomic uncertainty have further eroded investor confidence. The question now is whether this is a short-term correction or the beginning of a long-term downturn.
Anish Jain, W-Chain Founder, added his voice to the debate. He noted that macroeconomic considerations, including institutional blockchain adoption and regulatory clarity, are crucial in determining market cycles. ““While some may view the drop as a bear phase, others see it as a buying opportunity,” Jain stated. He added that the long-term fundamentals of Bitcoin are strong despite the current volatility.
Ryan Lee, a Bitget Research Chief Analyst, underscored global events’ impact on the price decline of Bitcoin. According to him, Trump’s announcement to impose tariffs sent world markets reeling, prompting Bitcoin, generally viewed as a risk-on asset, to dip together with stocks. “Over $4 billion in crypto liquidations intensified the sell-off, reflecting heightened investor caution. The $85,000–$90,000 range now serves as a critical support zone,” Lee explained. He named the $85,000–$90,000 support range as being extremely vital. If Bitcoin is maintained above this level, it may consolidate before regaining. Nevertheless, a breach below may point towards more bearishness towards $74,000.
Although the precipitous decline, Bitcoin’s past history of resilience and Trump’s pro-crypto approach indicate that this is perhaps a transient correction. However, ongoing trade tensions and economic uncertainty could intensify the slide. Meanwhile, investors should watch macroeconomic trends and significant technical levels in close proximity. Whether this is the beginning of a bear market or merely a blip remains to be observed.
