Bitcoin fell below $90,000 overnight, dropping 6% to $88,519. The decline puts the blue chip coin almost 20% off its peak reached on President Donald Trump’s inauguration day. The crypto market is awaiting its next catalyst.
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Equities have faced difficult sessions over the last week, with top-performing stocks down many times the index. This pressure has spilled over into bitcoin and crypto markets. The lack of visible short-term catalysts and pressure from equities creates an environment for profit-taking and pressure from shorts.
Some thoughts on the recent hack(s).
There is a pattern where hackers were able to steal large amounts of crypto from multi-sig “cold storage” solutions, as with ByBit, Phemex, WazirX and potentially others. In the most recent ByBit case, the hackers were able to make the…
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Bitcoin kicked off the year in rally mode, fueled by optimism about the positive changes the new Trump administration was expected to make for the crypto industry. However, since the President issued his widely anticipated statement at the end of January, the market has had little to look forward to.
Bitcoin’s recent decline and market pressure
Bitfinex Alpha has been explaining what is happening in crypto markets: "The momentum required for a sustained breakout has been lacking, which has led to a period of contraction and consolidation across almost all major crypto assets.” – @cointelegraphhttps://t.co/TwWMjSYaCF
— Bitfinex (@bitfinex) February 25, 2025
The contents of the statement were well received by the industry despite its tamer than hoped for language on a strategic bitcoin reserve. Bitcoin’s movements have been and may continue to be dictated by macroeconomic trends. From November through January, the market was very enthusiastic about pricing in a crypto-friendly U.S. administration.
Now it’s a question of waiting for that next catalyst. The $90,000 level marks the bottom of the narrow range bitcoin has been trading in since the end of November. Analysts have warned that if bitcoin were to meaningfully break below the level, it could see a deeper pullback toward $80,000.
Other cryptocurrencies fared worse on Monday. Ethereum and Solana’s token each tumbled 9%. The broader market of cryptocurrencies lost more than 8%.
