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The crypto scene has just experienced a new episode of turbulence: Bitcoin fell to $83,400 on February 26, 2025, its lowest level since November 2024. This sudden correction led to over a billion dollars in liquidations in the derivatives market. Such a situation has shaken investors’ confidence. Behind this decline, a convergence of macroeconomic and financial factors weighed on the asset, at the very moment when the strength of Bitcoin ETFs and the influence of Strategy on the market are being questioned.
Bitcoin in free fall : a market under pressure
The sudden drop of Bitcoin to $83,400 marked a major turning point for financial markets. In just three days, the crypto lost nearly $13,000. However, the asset has seen a rebound. The current price of Bitcoin stands at $86,300. Indeed, this loss triggered a massive liquidation of leveraged long positions, according to data from CoinGlass. This brutal correction notably affected the most exposed traders, amplifying the downward spiral and the intensification of volatility in the market.
Several factors contributed to this collapse. The main cause lies in fears of a global recession, prompting investors to shy away from risky assets. At the same time, American protectionist policies, notably new taxes on imports from Canada and Mexico announced by Donald Trump, have increased tensions in the markets. This unstable economic context has heightened the appeal of U.S. government bonds at the expense of volatile assets like Bitcoin. Even gold, historically a safe haven, fell by 2.2 % in just two days, a clear signal of the nervous climate settling over the financial markets.
Strategy, ETF, and options : a market weakened by uncertainty
Beyond the macroeconomic context, other factors have contributed to weakening Bitcoin’s bullish momentum. Strategy, often seen as a driving force behind BTC’s rise, now faces challenges regarding its strategy. Consequently, its action dropped by 19.4 % in one week, raising doubts about its ability to maintain its massive BTC purchases. Its ambition to raise $42 billion over three years to continue accumulating Bitcoin appears increasingly uncertain, fueling investors’ mistrust.
Meanwhile, Bitcoin ETFs, which were supposed to stabilize the market, are experiencing net outflows of $1.1 billion in just one day (February 24), demonstrating a lack of conviction among institutional investors in the face of the current volatility. This situation is further aggravated by the imminent expiration of Bitcoin options on February 28, amounting to $6.9 billion. With a majority of buy positions (call options) well above the current price, sellers (bears) now have a distinct advantage to maintain downward pressure and prevent any significant rebound.
The fall of Bitcoin to $83,400 illustrates the current fragility of the market in the face of macroeconomic turbulence and internal dynamics within the sector. Between massive outflows from ETFs, uncertainties surrounding Strategy, and pressure on BTC options, the signals sent by investors reflect a lack of conviction regarding the asset’s resilience in the short term. While a technical rebound cannot be ruled out, the market must first regain stability and liquidity to avoid further shocks. As volatility intensifies, the central question remains the same: can Bitcoin still play its role as a safe haven, or has it reverted to being purely a speculative asset in the hands of the most aggressive traders?
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
