Bitcoin Price Faces Major Decline: Risks of Falling Below $80K as Bearish Signals Mount

Bitcoin (BTC) has experienced a sharp downturn, with its price falling by 7.40% over the past 24 hours, dropping to around $89,500 on February 25. This marks Bitcoin's lowest level since November 2024 and has led to growing concerns that the cryptocurrency could fall below the critical $80,000 mark. Several factors have contributed to Bitcoin’s recent struggles, from geopolitical tensions to market liquidations and bearish technical signals.

Key Catalysts Behind Bitcoin's Decline

Several major catalysts are driving Bitcoin's price lower today:

1. US President Trump's Renewed Tariff Threats

1. Massive Crypto Market Liquidations

1. Ongoing ETF Outflows

1. Bearish Technical Signals

1. Trump’s Escalation of Tariff Threats

A primary contributor to Bitcoin’s poor performance is President Trump’s re-escalation of tariff threats. On February 24, Trump announced that sweeping tariffs on Canada and Mexico would take effect next week, ending a temporary pause. These tariffs, which include 25% duties on goods from both countries and an additional 10% tax on Canadian energy, were initially delayed due to diplomatic talks.

The renewed threat of trade wars has negatively impacted risk assets like Bitcoin, which tends to move in tandem with broader markets. As global stock markets decline in response to the tariffs, Bitcoin has followed suit, falling along with other high-risk assets.

This escalation has also boosted demand for safer assets, with gold rising by 12% in 2025. This shift to gold is a direct reflection of investors seeking stability amid growing trade uncertainty.

Additionally, the Federal Reserve’s outlook on keeping interest rates steady has added to the bearish sentiment, compounding Bitcoin’s struggles in the current market environment.

2. Massive Crypto Market Liquidations

Another significant factor contributing to Bitcoin’s decline is a wave of crypto market liquidations. In the past 24 hours, Bitcoin Futures saw $516.93 million worth of liquidations—the highest since December 2024.

A large portion of these liquidations, approximately $496.20 million, came from long positions, with only $20.73 million in short liquidations. When long positions are liquidated, traders’ positions are automatically sold by exchanges to cover their losses, further increasing sell-side pressure. This dynamic exacerbates Bitcoin’s downward momentum, as seen during the market downturn on February 3, when similar liquidation trends were observed following Trump’s initial tariff threats.

3. Persistent ETF Outflows Increase Selling Pressure

Bitcoin's price struggles are further intensified by persistent outflows from US-based Bitcoin ETFs. Since February 17, 2025, Bitcoin ETFs have seen $1.77 billion in outflows, with a significant chunk of that amount—$516.4 million—being withdrawn on February 24, coinciding with Trump’s renewed tariff threats.

Institutional investors appear to be reducing their exposure to Bitcoin amid ongoing macroeconomic uncertainty. As large ETF redemptions occur, providers are forced to sell off Bitcoin holdings, which amplifies the selling pressure and contributes to the overall price decline.

4. Bearish Technical Signals: Double-Top Reversal Pattern

From a technical standpoint, Bitcoin's price is also showing signs of further downside potential. The cryptocurrency is currently in the midst of a double-top bearish reversal pattern. This pattern forms when an asset reaches two similar peaks but fails to break higher, signaling a potential trend reversal.

As of February 25, Bitcoin has entered the breakdown stage of this pattern. In technical analysis, the downside target for a double-top pattern is calculated by subtracting the neckline level from the pattern’s peak height. Applying this rule to Bitcoin’s current price action suggests a potential decline to around $77,500, which represents a 13% drop from the current price levels. If the downward momentum continues, Bitcoin could see further losses over the coming weeks, potentially reaching this target by March.

Conclusion: What’s Next for Bitcoin?

Bitcoin's price decline is being driven by a combination of macroeconomic factors, massive liquidations, and bearish technical signals. The $90,000 support level has been breached, and with key indicators pointing to further downside, Bitcoin’s price could fall below $80,000 in the near term.

The $77,500 target, based on the ongoing double-top pattern, is a critical level to watch. If Bitcoin fails to find support soon, it could face even greater losses. However, Bitcoin’s volatility remains a hallmark of the market, and a reversal could still be possible if the technical and macroeconomic conditions shift in the coming weeks.

For traders and investors, staying alert to these developments will be crucial to navigating the next phase of Bitcoin’s price action.