Bitcoin Drops Over 20% From Its 2025 Peak – Is a Bear Market on the Horizon?
Bitcoin has experienced a significant decline, plunging over 20% from its 2025 peak of $109,350. The sharp sell-off has reignited concerns about whether the crypto market is entering a bear phase.
As of now, Bitcoin is trading around $90k. This decline has erased nearly $300+ billion from the market, intensifying investor volatility and uncertainty.
Avinash Shekhar, Co-Founder and CEO of Pi42, described Bitcoin’s drop below $85,000 as the largest sell-off of the year. Within 24 hours in February, over 79,000 BTC were sold at a loss. He attributes this decline to several factors, including ETF outflows and heightened geopolitical risks.
“The crypto market has entered a bear phase as Bitcoin has dropped over 20% from its January peak. With additional selling pressure from institutional investors and concerns over Trump’s proposed EU tariffs, BTC could further decline toward $74,000,” Shekhar noted.
Is This a Buying Opportunity or the Start of a Larger Decline?
The debate continues whether this correction signals the start of a bear market or a short-term dip before recovery. Anish Jain, Founder of W-Chain, believes macroeconomic factors, such as regulatory clarity and institutional blockchain adoption, play a crucial role in determining market cycles.
“While some see this as a bear phase, others view it as a buying opportunity,” Jain said. He emphasized that despite short-term volatility, Bitcoin’s long-term fundamentals remain strong.
Other experts argue that Bitcoin’s historical resilience suggests the current downturn may be temporary. The crypto market has historically experienced similar corrections before resuming upward trends.
Crypto Rover, a well-regarded influencer known for his insightful market analysis, recently shared his thoughts on the unfolding situation. His perspective underscores the importance of monitoring key support levels and maintaining a long-term outlook amid short-term turbulence:
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— Crypto Rover (@rovercrc) March 04, 2025
Adding another influential voice, Michael Saylor, CEO of MicroStrategy, has also weighed in on the current market dynamics. In his recent tweet, Saylor hints at a bullish stance despite the ongoing downturn, suggesting that strategic accumulation might be underway even as the market falters.
View Tweet
Market Reactions and What Investors Should Watch
Ryan Lee, Chief Analyst at Bitget Research, highlighted that Bitcoin’s recent drop followed President Donald Trump’s proposal for a 25% tariff on the European Union. These trade war fears, coupled with inflation concerns, have triggered a global risk-off sentiment, impacting both equities and cryptocurrencies.
“Over $4 billion in crypto liquidations have intensified the sell-off, causing increased investor caution. The $85,000–$90,000 range now serves as a crucial support zone,” Lee explained.
Despite the pullback, some analysts believe Bitcoin could consolidate around these levels before a potential recovery. If Bitcoin holds above $85,000, it may indicate stabilization and the possibility of a rebound. However, if BTC breaks below this level, a further decline toward $74,000 remains a possibility.
What’s Next for Bitcoin?
Bitcoin’s decline has raised concerns about whether the market has entered a bear phase, but opinions remain divided. While institutional selling and macroeconomic instability have contributed to the drop, long-term fundamentals and historical resilience suggest this could be a temporary correction rather than a full-fledged bear market.
For investors, monitoring macroeconomic developments, ETF flows, and key support levels will be critical. If Bitcoin manages to maintain support above $85,000, the market could consolidate before a recovery. However, continued trade tensions and economic uncertainty could push prices lower in the coming weeks.
As the crypto market navigates this volatility, one thing remains certain—Bitcoin’s price movements will continue to be driven by a mix of market sentiment, macroeconomic conditions, and institutional participation.
