As Bitcoin plummeted below the $85,000 mark on February 27, 2025, crypto investors found themselves in familiar territory—pain. The world’s largest cryptocurrency touched an intraday low of $82,133 just a day earlier, marking a brutal 22% decline from January’s all-time high of $109,000. Crypto bros are sweating. Again.
The causes? Take your pick. Regulatory uncertainty has markets on edge, with Trump’s administration delivering fewer pro-crypto policies than the faithful had hoped. The $1.5 billion Bybit hack didn’t help matters. Neither did macroeconomic concerns about tariff threats and shifting Fed rate cut expectations. Markets hate uncertainty. And right now, there’s plenty to go around.
Institutional investors aren’t sticking around to find out what happens next. Over $2 billion has been yanked from spot Bitcoin ETFs in February—the largest outflows since their launch. On February 25 alone, nearly $938 million fled these products. Meanwhile, gold ETFs are seeing inflows. Funny how that old-school “store of value” looks appealing when digital gold takes a nosedive.
Technically speaking, things look grim. Bitcoin crashed below its 200 EMA for the first time since September 2024. A potential double-top pattern suggests $73,800 could be next. Support levels at $72,325 and $66,900 loom below. The 200 EMA level around $85,650 remains crucial for determining whether bulls can regain control. The intense price volatility is consistent with cryptocurrency’s tendency to experience rapid changes in value due to its 24/7 trading environment. The market’s mood? The Crypto Fear & Greed Index plunged to 10—”Extreme Fear”—its lowest reading since June 2022.
The bloodbath isn’t limited to Bitcoin. Ethereum dropped 6.44% to $2,330, and the broader crypto market cap shed 4.63% in 24 hours. Cardano touched extreme lows on February 26, raising existential questions about its future.
Expert opinions are split. Some see this as a normal 30% correction in a bull cycle. Others, like Arthur Hayes, predict a drop to $70,000. This debate intensifies as over 79,000 BTC were sold at a loss within a single 24-hour period. The debate rages—temporary correction or the start of a bear market?
Either way, with over $765 million liquidated in 24 hours on February 26, one thing’s clear: crypto winter feels a lot closer than it did a month ago.
