Bitcoin (BTC) Plunges to its Lowest Point in 3 Months: What’s the Cause & Impact? (26/2/25)

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February 26, 2025

Gambar Bitcoin (BTC) Plunges to its Lowest Point in 3 Months: What’s the Cause & Impact? (26/2/25)

Jakarta, Pintu News – The price of Bitcoin recently dropped sharply to a three-month low, from $95,930 to $86,010 between February 24 and 25, 2025, registering a 10.7% decline. This decline has raised concerns among traders and investors, given Bitcoin’s previously fairly stable support level of $90,000.

This price drop also led to a massive liquidation of over $760 million in long leveraged positions. To determine whether or not Bitcoin’s bullish trend has ended, it is important to examine the key factors that influenced this price drop.

External Factors: Global Economic Uncertainty

One of the main factors influencing Bitcoin’s price decline is global economic uncertainty. Investors’ concerns regarding world economic growth have intensified after US President Donald Trump confirmed his plans to impose import tariffs on Canada and Mexico beginning in March 2025. This decision is seen as a result of international trade policies that are considered detrimental to the United States.

On the other hand, the 10-year US Treasury yield fell to a three-month low, signaling high investor demand for safer assets. In addition, the US dollar weakened against other global currencies, which was reflected in the DXY index dropping to 106.30 on February 25, also a three-month low. These concerns over the US economy have further worsened market sentiment, as many investors have begun to doubt the pro-growth prospects promised by the new administration.

Also Read: Senator Dick Durbin Introduc es Legislation to Stop Fraud at Crypto ATMs

How the Tech Sector Affects the Price of Bitcoin

Bitcoin (BTC) seems to be sticking with the risk market trend, especially influenced by the tech sector. Some major companies in the tech sector such as Nvidia (NVDA), Tesla (TSLA), and Palantir (PLTR) have also experienced significant price drops since February 21, 2025.

This suggests a strong correlation between Bitcoin and technology assets, which are often growth-dependent and do not offer dividends. Global macroeconomic uncertainty affecting the tech sector has also contributed to the decline in the price of Bitcoin, which is seen as a risky asset by many traders.

However, in the crypto market, certain events can also affect the behavior of Bitcoin traders. One of these is the regulatory issues faced by crypto exchanges, which may cause traders to reduce their exposure to Bitcoin.

Impact of OKX Case and Crypto Regulation

A case involving OKX, one of the major crypto exchanges, also had a negative impact on the perception of Bitcoin as an investment asset. On February 24, 2025, OKX settled a legal matter with the US Department of Justice and agreed to pay a fine of $500 million. The case arose after reports that OKX allowed individuals to provide false information to avoid regulatory procedures, facilitating suspicious transactions worth more than $5 billion.

While this case is not directly related to Bitcoin, it has had a considerable impact on the crypto’s image in the eyes of institutional investors and regulators. Most sovereign investors and pension funds struggle to distinguish Bitcoin from illegal financial activities involving other digital assets, such as stablecoins. This further exacerbates the perception of Bitcoin as a high-risk asset, despite the fact that it has quite strong defense mechanisms, including strict monetary policy and resistance to censorship.

Bitcoin’s Future Prospects Amid Economic Uncertainty

Despite the significant drop, analysts do not believe that Bitcoin price will fall further below $86,000 in the near future. Governments around the world are trying to cope with a potential economic recession, prompting central banks to implement stimulus policies.

In this situation, Bitcoin with its tough monetary policy and resistance to censorship remains attractive as an investment alternative. Although this price drop has caused a negative reaction, many investors see it as an opportunity to protect their assets from inflation and risks associated with looser monetary policy.

However, whether Bitcoin can return to levels above $95,000 in the near future is still a question. Some analysts predict that this recovery could happen within days or weeks, depending on global economic developments and market sentiment.

Conclusion

Bitcoin (BTC) has experienced a significant price drop to its lowest point in the past three months, largely influenced by global economic uncertainty and regulatory issues involving major crypto exchanges. Nonetheless, Bitcoin’s long-term prospects remain promising, with many investors viewing it as an asset that can hedge against economic uncertainty.

Right now, the main question is how quickly Bitcoin can recover from this decline, and whether existing economic factors can help push the price back to higher levels.

Also Read: 3 Factors Causing the 50% Drop in Solana (SOL) Price from All-Time Highs

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

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