Key Points
- The price of Bitcoin is expected to align with the optimistic trends of gold, rooted in its growing acceptance by institutional investors and governments.
- The Bitcoin DeFi sector has surged to over $6 billion, spearheaded by restaking initiatives from Babylon.
Bitcoin price
BTC
$95,624
24h volatility:
0.7%
Market cap:
$1.90 T
Vol. 24h:
$27.02 B
opened the third week of February with a bearish trend, as investors prepared for a challenging economic landscape due to uncertainties surrounding mid-term outcomes influenced by U.S. tariff disputes. The leading cryptocurrency has seen a decline of about 2% over the last two days, trading at approximately $95.6K on Tuesday, February 18, during the mid-London trading session.
Consequently, the apprehension regarding further Bitcoin price declines intensified, with the BTC fear and greed index dropping to 47% from 51% on Monday. The prevailing sell-the-news phenomenon, catalyzed by the recent inauguration of U.S. President Donald Trump, has adversely affected the broader cryptocurrency market.
Bitcoin Faces Mixed Sentiments from Whale Investors
As per data from Glassnode, capital inflows into Bitcoin have sharply reduced by nearly 30% over the past four weeks. In the previous week, Bitcoin miners have offloaded around 2,000 BTCs, consequently decreasing their reserves to 1.8 million.
With over 90% of Bitcoin holders currently in profit, the likelihood of a significant sell-off in the near future appears feasible. According to CoinGlass, the overall supply of Bitcoin on centralized exchanges has surged by approximately 53.4K BTCs, amounting to about 2.23 million.
Meanwhile, BlackRock’s IBIT and Fidelity’s FBTC accumulated over $116 million worth of BTCs on Monday, resulting in a net cash inflow of around $66 million for all U.S. spot BTC ETFs.
Potential BTC Price Drop to $92K
Despite gold prices showcasing a strong bullish trend, Bitcoin continues to encounter increased bearish sentiment. The flagship cryptocurrency has been consolidating within a narrow horizontal range between $92K and $109K since November 2024.
This position augurs a high probability of Bitcoin retesting the support level around $92K in the upcoming weeks. Should this support level be breached, a significant sell-off towards $75K could become unavoidable.
$BTCUSD Support at 91.2K. Break below risks a sharp pullback retesting 73.7K. For now, we conclude that the price is in a tight range adhering to the pattern boundaries. pic.twitter.com/SzVBwqVPiB
— Aksel Kibar, CMT (@TechCharts) February 18, 2025
Market Prospects
The outlook for the Bitcoin market in 2025 remains strong and optimistic despite existing corrections. The significant investment from institutional players has reinforced the long-term bullish sentiment for BTC. According to Bitcoin Treasuries, around 160 entities, including public companies and spot ETF issuers, collectively hold approximately 3.11 million BTCs in their reserves.
The regulatory landscape for Bitcoin has notably improved across major markets, particularly in the U.S. and European nations, over the past year. Already, more than 20 states in the U.S. have proposed legislations aimed at adopting strategic Bitcoin reserves.
The Bitcoin network has gradually advanced into a robust DeFi ecosystem, boasting a total value locked (TVL) of about $6.5 billion. Recently, Tether announced that its USDT
USDT
$1.00
24h volatility:
0.0%
Market cap:
$141.73 B
Vol. 24h:
$39.76 B
will now be accessible on the Bitcoin network, further enhancing its mainstream adoption.
Disclaimer: Coinspeaker is dedicated to delivering unbiased and transparent coverage. This article aims to present accurate and timely data but should not be construed as financial or investment advice. Given the rapid fluctuations in market conditions, we advise you to verify the information independently and consult a professional before making any decisions based on this content.
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