Bitcoin Suffers Biggest 3-Day Drop Since FTX Collapse
Bitcoin (BTC) has taken a dramatic tumble, marking its steepest three-day decline since the infamous FTX bankruptcy shook the crypto world in November 2022. The leading cryptocurrency shed 12.6% of its value from Monday to Wednesday, February 24–26, 2025, according to TradingView data, ending a prolonged period of consolidation above $90,000 on a sour note. Today, February 28, 2025, market watchers are left pondering: where does Bitcoin go from here?
Price ($USD) | Feb 24 Feb 25 Feb 26
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$110,000 | | |
$105,000 | | |
$102,000 | ┏━ [$102K] | | Broken Consolidation Zone ($90K-$110K)
$100,000 | ┃ | |
$97,000 | ┃ | ┏━ [$97K] |
$96,000 | ┗━ [$96K] | ┃ |
$90,000 | | ┃ | ┏━ [$90K]
$89,400 | | ┃ | ┗━ [$89.4K] <--- 12.6% Drop
$87,000 | | ┗━ [$87K] |
$86,314 | | [$86.3K]| "Liquidity Cascade: $1.5B Liquidated"
$85,000 | | |
$82,000 | -------- Predicted Support ($82K) --------
$80,000 | | |
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Volume | ██ | █████ | ████The sell-off, which analysts attribute to a cocktail of macroeconomic pressures and fading institutional enthusiasm, has reignited debates about Bitcoin’s near-term trajectory. Tighter fiat liquidity conditions and a noticeable dip in demand from big players have pushed the market into a precarious state, with the CME futures dipping toward backwardation—a scenario where spot prices outpace futures. Adding to the gloom, the tech-heavy Nasdaq index has also faltered, amplifying the risk-off sentiment dragging Bitcoin down.
Analysts point to a mix of culprits behind the slump. Earlier this month, CoinDesk flagged investor frustration over the slow pace of President Donald Trump’s administration in establishing a promised national BTC reserve—a development many had hoped would bolster the asset’s legitimacy. Meanwhile, macro headwinds, including the looming threat of U.S. tariffs and rising inflation expectations, have cast a shadow over markets. Even a potentially soft U.S. core PCE report due Friday might fail to lift spirits, with some fearing it could signal economic slowdown instead.
David Acheson, a prominent market commentator, captured the mood in a newsletter shared with CoinDesk on Wednesday. “Even if PCE data comes in weaker than expected, it might just confirm fears of stalling growth, sending markets spiraling further,” he warned. Acheson highlighted concerns over tariffs, inflated corporate valuations, and an overreliance on AI-driven portfolios as key drivers of the downturn. Yet, he struck a cautiously optimistic note, suggesting Bitcoin’s unique status as both a risk asset and a “digital gold” safe haven could soon attract fresh buyers at the right price point.
From a technical perspective, the breakdown of Bitcoin’s $90,000–$110,000 trading range signals trouble ahead. Historical patterns suggest such a breach could trigger a drop equal to the range’s width, potentially pulling BTC down to $70,000. One analyst, quoted anonymously, pegged a worst-case scenario at $72,000–$74,000. Markus Thielen of 10x Research offered a more precise outlook, noting that Bitcoin’s short-term holders’ realized price sits at $92,800. Drawing parallels to a summer 2024 dip, he predicted a possible slide to $82,000 before the market finds its footing.
Despite the bearish vibes, not all hope is lost. Acheson argued that Bitcoin’s dual appeal could lure long-term investors back once prices stabilize, sparking a trader resurgence. Some also see a silver lining in potential regulatory clarity, with Wednesday’s Senate Committee hearing on digital assets hinting at a bipartisan framework that might boost institutional confidence.
For now, though, the crypto king is reeling. The 12.6% plunge—the largest three-day skid since FTX’s collapse—underscores Bitcoin’s vulnerability to macro shifts and wavering sentiment. Whether it finds support at $82,000, craters to $70,000, or stages an unexpected rebound, one thing is clear: the market’s next move will be closely watched. As of this morning, February 28, 2025, the question looms large—what’s next for Bitcoin?
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