Bitcoin falls over 20% from January peak, Will crypto market rebound? – The Times of India

Bitcoin has dropped more than 20% from its January peak of $109,350 to hit an intraday low of nearly $83,000 on February 27. Although the cryptocurrency has since recovered to around $85,000, the sell-off has erased nearly $300 billion from its market value, according to ET report.
Avinash Shekhar, Co-Founder and CEO of Pi42, said that Bitcoin’s decline below $85,000 marks the largest sell-off of 2025. In just 24 hours, over 79,000 BTC were sold at a loss, signalling a shift towards a bear market.
Shekhar attributes the market pressure to factors such as ETF outflows and geopolitical concerns, including former President Donald Trump’s threat of a 25% tariff on European Union (EU) imports. He suggests Bitcoin could experience a further drop to $74,000 if these conditions persist.
Altcoins are also facing significant losses, with XRP’s open interest hitting its lowest point in 2025. The combination of institutional selling and macroeconomic instability is shaking investor confidence, leading to questions about whether this is a temporary correction or the beginning of a prolonged downturn.
Anish Jain, Founder of W-Chain, acknowledges the ongoing debate over whether Bitcoin’s recent drop signals a bear market. He emphasizes that macroeconomic factors, such as the adoption of blockchain technology by institutions and regulatory clarity, are crucial in determining the market’s trajectory. While some see this decline as the start of a bear phase, Jain suggests it could also be viewed as a buying opportunity, given the strong long-term fundamentals of the crypto market.
Ryan Lee, Chief Analyst at Bitget Research, points out that Bitcoin’s recent decline coincided with global market turmoil following Trump’s tariff proposal. As a risk-on asset, Bitcoin fell alongside equities, influenced by fears of trade wars and inflation. The sell-off intensified with over $4 billion in crypto liquidations, reflecting growing investor caution.
Lee identifies the $85,000–$90,000 range as a crucial support zone for Bitcoin. While the sharp drop could suggest a short-term correction, Bitcoin’s historical resilience and Trump’s pro-crypto stance indicate that it may not signal a full-fledged bear market. However, prolonged economic instability and ongoing trade tensions could lead to further downside.
Lee suggests monitoring both macroeconomic developments and Bitcoin’s technical support levels. If Bitcoin holds above the $85,000 mark, it could indicate consolidation before a potential recovery. A break below this level, however, may signal further declines toward $74,000.
(Disclaimer: The opinions, analyses and recommendations expressed herein are those of brokerage and do not reflect the views of The Times of India. Always consult with a qualified investment advisor or financial planner before making any investment decisions.)