Bitcoin (BTC) prices fell from $ 95,930 to $ 86,010 between February 24 and February 25, the lowest since November 2024. Unexpected 10.7% decreased by 10.7% triggered more than $ 16 million, which was supported by $ 90,000 over the last three months.
In order to determine whether Bitcoin’s bull run is actually over, it is essential to analyze the main factors of recent stagnation. Some analysts point out on February 24th for $ 556 million for the net leak of the Spot Bitcoin Exchange-Traded Funds (ETF). However, this explanation overlooks the fact that the total leaks have reached $ 555 million over the last four days, but Bitcoin has been maintained at more than $ 95,500.
Investors are concerned about global growth and Trump tariffs.
Investors’ concerns about global economic growth seems to be the main driving force of the recent risk market after US President Donald Trump delayed tariffs on Canada and Mexico imports for a month.
US 10 -year financial yield (left) vs. DXY index (right). Source: TradingView / COINTELEGRAPH
The US 10 -year Treasury’s return dropped to the lowest level in three months, and the strong demand for investors for the safest assets signed. Meanwhile, the US dollar was weakened in global currency baskets as reflected in the DXY index and fell to 106.30 on February 25.
Trump insisted that the United States was “used” by foreign countries due to unfair trade policy, including added value taxes on North American products. The mayor responded negatively to the announcement and warned that Brown Brothers Harryman, senior strategist Elias Haddad, said, “It is emerging for the US economy.”
“The new US administration hasn’t conveyed our growth expectations yet,” said Mark Cudmore, a macroeconomic analyst in Bloomberg News.
As a dominant economic power, reducing confidence in the United States is often considered a disadvantage in world growth. Other major assets, including NVIDIA (NVDA), TSLA (TSLA), Palantir (PLTR) and Broadcom (AVGO), have seen similar prices since February 21.
NVIDIA, Tesla, Palantir, Broadcom vs. BTC/USD. Source: TradingView / COINTELEGRAPH
A strong correlation is still considered a dangerous asset and is carried out with the technical sector, which relies greatly on growth and usually does not provide dividends. However, the Cryptocurrency market certain events have reduced Bitcoin traders.
OKX Settlement Dents Bitcoin’s image and interfering with approval for strategic reserves
On February 24, OKX agreed with the US Department of Justice and agreed to pay a fine of $ 500 million from the fees obtained from institutional investors. According to the report, exchange is recommended to provide individuals with false information to bypass the regulatory process, and suspicious transactions and criminal revenue promote more than $ 5 billion.
Although it is not directly related directly to Bitcoin, the event releases negative light in the US regulatory environment, including strategic cryptocurrency reserves. More importantly, countries and pension funds often struggle to differentiate Bitcoin, mainly to differentiate with digital assets, stable financial activities. As a result, OKX cases have been strengthened by high -risk investments rather than hedge instruments.
There is little reason that the price of Bitcoin will fall to less than $ 86,000 because the government can push the central bank into stimulating measures, including potential economic recession. Initial reactions may be to reduce exposure to risky assets, but investors are afraid of dilution of currency as monetary base expands.
As a result, Bitcoin’s difficult monetary policy and censorship resistance will prevail. But it is uncertain to predict whether or more than a few days or weeks will take over $ 95,000.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.