Bitcoin plunged below the critical $85,000 mark on February 27, 2025, sending shockwaves through crypto markets. The flagship cryptocurrency crashed to an intraday low of $83,740, representing a brutal 20% drop from January’s peak. Ouch. This wasn’t just your average dip—we’re talking about the largest sell-off of 2025 so far, wiping out nearly $300 billion in market value. Not exactly pocket change.
The carnage appears driven by multiple factors. ETF outflows intensified as institutional investors shifted sentiment, while Trump’s EU tariff threats didn’t help matters. Over $4 billion in crypto liquidations added fuel to the fire. Talk about a perfect storm. The massive exodus from Bitcoin ETFs signaled that the big money was heading for the exits, and fast. According to expert Ryan Lee, this selling pressure is directly linked to tariffs proposed by Trump against the European Union.
Technical analysts are now watching the $85,000-$90,000 range as a critical support zone. If Bitcoin breaks below $85,000 convincingly, the next target could be $74,000. Some traders are already eyeing the $65,000-$69,000 range that’s emerged in early March. The 23.6% Fibonacci retracement level? Broken. The once-solid $90,000 support? Gone like yesterday’s news. Price rebounded slightly after finding strong support at $85,051.64 during periods of oversold conditions.
Bitcoin’s cliff dive below $85K puts $74K in the crosshairs, with February support levels vanishing faster than crypto profits.
Market sentiment has tanked accordingly. The Crypto Fear & Greed Index plummeted to an Extreme Fear reading of 10—basically screaming “everyone’s freaking out.” Yet strangely, the long-to-short ratio on Binance rose to 2.88, suggesting some contrarians are betting on a reversal. This pattern resembles previous crypto bear markets that historically lasted around 289 days on average.
On-chain metrics tell an equally concerning story. Bitcoin’s MVRV ratio sits at 2.7, indicating fair value after the drop. Active addresses decreased from 950,000 to 920,000, and over 79,000 BTC were sold at a loss during the 24-hour crash window. That’s a lot of painful selling.
While some analysts forecast a potential rebound to $92,000 in March, others warn of further drops to the $70,000 range. The market remains divided between those seeing this as a temporary correction and others fearing a prolonged bear market. Meanwhile, altcoins like Ethereum, XRP, and yes, even Cardano, are feeling the pain too.
