The Bitcoin market is witnessing notable fluctuations as it grapples with uncertainties stemming from macroeconomic developments and technical pressures. On February 24, 2025, Bitcoin (BTC) opened at approximately $95,467, experiencing losses of about 0.8% after failing to hold above the $98,000 mark earlier this month. This price movement has led analysts to closely monitor key support levels, especially the psychological threshold of $90,000.
Mike Ermolaev, founder of Outset PR, observed, "The volatility of Bitcoin is gradually decreasing. Throughout the month, the cryptocurrency has oscillated within a narrow range between $93,500 and $100,000, signaling a period of consolidation. Despite the current absence of significant movements, this decrease in volatility indicates a major movement is likely to occur within the next week or two, and it seems probable the movement will be upward.”
Further complicates the market is the broader economic climate, particularly following the announcement of potential tariffs by former President Donald Trump on imports from Canada and Mexico. This has created speculations of trade wars, contributing to strained market conditions as global markets react. Notably, Bitcoin has seen $887.85 million liquidated within 24 hours due to these developments, as reported by multiple sources.
On the same day, Ethereum (ETH) faced its own challenges, dropping below $2,500 with significant liquidation of $192.53 million within the same period. ETH's price fell 8%, evidencing how intertwined the fates of major cryptocurrencies are with market sentiments and macroeconomic news.
Analysts have also pointed to additional upcoming challenges for the crypto market, such as the scheduled unlocking of large amounts of Solana (SOL) tokens, which could flood the market and push prices down. On March 1, 2025, approximately $2.5 billion worth of SOL could be sold following liquidation efforts related to the collapse of the FTX exchange.
Bybit exchange was also recently affected by security breaches, having suffered nearly $1.5 billion worth of cryptocurrency theft. The news of the hack has dampened investor confidence, but analysts like Ana de Mattos from Ripio indicated the price action of Bitcoin may not have dropped drastically as anticipated due to Bybit’s ability to process around $6 billion worth of withdrawals, thereby addressing immediate investor fears.
While the overall sentiment remains cautious, some traders continue to express concern over future price trajectories. One trader, CrypNuevo, commented on social media platform X, indicating stakes are evenly poised on liquidation levels. “Now we can see on liquidation levels, they are equal on both the negative or positive side,” he noted. On the other hand, trader Roman cautioned against optimism, saying it looks like Bitcoin could be headed down to the support level of $90,000 if it failed to break above previous resistance levels.
Despite low volatility and mixed feelings among traders, there seems to be some hope for price recovery. Luca, another trader, claims Bitcoin is set for potential positive returns as it tests significant support levels established since October. “If we can hold levels above $90,600, it’s possible we regain upward momentum,” he suggested, alluding to historical patterns where Bitcoin has showcased resilience even during uncertain times.
Market experts have highlighted the need for Bitcoin to break the resistance levels marked between $98,150 and $102,200 this month to avoid logging its first negative February since before the pandemic. Typically, February has been one of the strongest months for Bitcoin, with historical performance largely improving during this period.
Meanwhile, cryptocurrencies such as Dogecoin (DOGE) witnessed declines, with DOGE dropping 6.7%. Altcoins, too, suffered injuries with major losses among the top 10 cryptocurrencies. Analysts present the market as entering precarious territory, underlining the importance of tracking upcoming macroeconomic decisions, including anticipated policy shifts from the Federal Reserve on interest rates and inflation.
Indeed, investors remain vigilant, peering toward technical and economic developments with skepticism and hope. The cryptocurrency market, still relatively nascent compared to traditional markets, is facing its share of challenges, but just as many believe Bitcoin has the strength to weather the storm as evidenced by its historical resilience following episodes of volatility.