Bitcoin (BTC) has recently fallen below $90,000 amidst economic uncertainty and escalating international political tensions. This decline follows Donald Trump’s announcement of a 25% tariff on imports from Canada and Mexico, which has raised economic concerns and prompted sell-offs in the cryptocurrency market.
As Bitcoin dropped to a low of $86,300, it reflected heightened volatility. The overall cryptocurrency market has lost $230 billion, signaling that investors are exercising caution. Additionally, a capital outflow of $508 million from cryptocurrency funds reveals a growing skepticism among market participants.
Other cryptocurrencies, including XRP, have also continued to decline. The recent Bybit hacking incident has further undermined market confidence.
Positive Developments Fail to Lift Bitcoin Prices
Despite the adverse market conditions, there have been some positive developments in the cryptocurrency sector. The U.S. SEC’s decision to withdraw its lawsuit against Coinbase signals a potentially more favorable regulatory environment, which could lead to clearer rules for cryptocurrencies.
Meanwhile, Michael Saylor continues to purchase Bitcoin. His company, Strategy (formerly MicroStrategy), recently acquired 20,365 BTC valued at approximately $2 billion, at an average price of $97,514. This acquisition increases Strategy’s total Bitcoin holdings to 499,096 BTC, worth around $33.1 billion. The firm plans to continue purchasing through its ’21/21′ initiative, allocating $42 billion for Bitcoin acquisitions over the next three years.
Strategy has acquired 20,356 BTC for ~$1.99B at ~$97,514 per bitcoin and has achieved BTC Yield of 6.9% YTD 2025. As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per bitcoin. $MSTR https://t.co/mNWDaXRE7N
— Michael Saylor
(@saylor) February 24, 2025
Institutions Remain Confident Despite Market Drop
Financial institutions continue to show interest in Bitcoin, even amid recent declines. BlackRock has increased its stake in Strategy to 5%, demonstrating long-term investment confidence. Additionally, Metaplanet, a Japanese investment firm, bought another 135 BTC valued at $13 million, with an average price of $96,185, bringing their total holdings to 2,225 BTC worth $205 million and yielding a return of 12.7% since they began accumulating in April.
Bitcoin’s value has decreased nearly 10% in the past month due to political uncertainties. Nonetheless, the government of El Salvador has purchased an additional 7 BTC at $94,050 each, bringing its total holdings to 6,088 BTC worth $560.7 million. This purchase exceeds El Salvador’s usual strategy of acquiring 1 BTC daily, occurring just before Trump’s tariff announcement impacted the crypto market.
Trump has expressed support for crypto by pushing for clearer regulations and proposing an advisory group, with notable Bitcoin advocate Michael Saylor likely to provide guidance on digital asset policies. These initiatives could create a more favorable environment and help cryptocurrency gain wider acceptance in the United States.
Technical Analysis of Bitcoin (BTC/USD) – February 25, 2025
Bitcoin (BTC/USD) continues its downward trend, currently priced at $89,100, down 7% in the past 24 hours. The rapid decline was triggered when Bitcoin fell below a crucial support level at $92,300, resulting in sales that drove the price to a low of $89,000. This movement confirms a breakdown below the 50 EMA at $94,500, indicating ongoing selling pressure.
Resistance now stands at $92,300, which was previously a support level. If the price rises above this threshold, it may reach the next resistance at $94,500, coinciding with the 50 EMA. However, Bitcoin must reclaim a position above $96,800 to begin a bullish trend once again.
The next support level is at $86,400, with potential declines to $83,900 and $81,500 if selling pressure persists.
Overall, the technical outlook remains bearish as long as BTC stays below the 50 EMA and the downward trendline. The break below $92,300 paves the way for further downward movement, making the $86,400 support level crucial. If this level is broken, it could accelerate the decline towards the $81,500 zone.
BTC Bull: Real Bitcoin Rewards for Holders
BTC Bull ($BTCBULL) is gaining traction as a meme token that rewards holders with actual Bitcoin. Unlike regular tokens, BTC Bull automatically distributes BTC when it reaches target prices, incentivizing both short-term and long-term investment.
BTC Bull features a staking system with returns of up to 154% per year, allowing users to earn while supporting the token’s ecosystem. Currently, the staking pool holds 681,599,760 BTCBULL tokens, indicating significant community participation.
The pre-sale for BTCBULL is ongoing, with the token priced at $0.00238 each. It has already raised $2.79 million of its $3.29 million target, showing substantial interest from investors. As the price is expected to rise soon, this presents a prime opportunity to invest in BTCBULL and take advantage of this unique reward system.
