{"id":375975,"date":"2025-02-27T11:10:03","date_gmt":"2025-02-27T05:40:03","guid":{"rendered":"https:\/\/dripp.zone\/news\/bitcoin-slips-to-86k-is-the-bull-run-over-crypto-news\/"},"modified":"2025-02-27T11:21:42","modified_gmt":"2025-02-27T05:51:42","slug":"bitcoin-slips-to-86k-is-the-bull-run-over-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bitcoin-slips-to-86k-is-the-bull-run-over-crypto-news\/","title":{"rendered":"Bitcoin slips to $86K \u2014 Is the bull run over? – Crypto News"},"content":{"rendered":"

<\/p>\n

\n

This is a segment from the 0xResearch newsletter. To read full editions, <\/em>subscribe<\/em><\/a>.<\/em><\/p>\n

\n

I\u2019ve had a horizontal line on my main BTC chart since the Nov. 26 test of the $91k level: \u201c1D close below here = end of bull market.\u201d\u00a0<\/p>\n

With bitcoin ETFs experiencing over $2.4 billion in net outflows throughout February and broader macroeconomic pressures<\/a> weighing on risk assets, the question arises: Is this just a correction, or are we witnessing the start of a prolonged downturn<\/a>?<\/p>\n

Sorry to say, I\u2019m now in the latter camp. After posting intraday lows around $86k \u2014 a nearly -20% retracement from its peak \u2014 the market may well be due for a bounce, but the support breakdown level is likely to provide firm resistance and it will take some serious force to get back into the range. It\u2019s frankly hard to see a near-term catalyst for that.<\/p>\n

Bybit hack the last straw<\/h2>\n

The recent Bybit hack<\/a> \u2014 now attributed<\/a> to a compromised Safe wallet developer \u2014 has shaken some investors\u2019 confidence, perpetuating fear-driven selling.\u00a0<\/p>\n

Bybit says it has replenished its ETH supplies and seems to have had no trouble servicing withdrawals, but the damage to market liquidity is evident.<\/p>\n

The hack\u2019s fallout could also step up regulatory oversight, with Komodo Platform CTO Kadan Stadlemann suggesting that lawmakers may push to tighten consumer protections further.<\/p>\n

\u201cThis could include mandatory insurance for user funds, stricter licensing requirements for exchanges and the establishment of dedicated regulatory bodies to oversee cryptocurrency operations,\u201d Stadlemann told Blockworks.<\/p>\n

Outflows, liquidations and rate uncertainty<\/h2>\n

Aside from the Bybit hack, MEXC COO Tracy Jin attributes bitcoin\u2019s decline to a combination of ETF outflows and macroeconomic uncertainty.<\/p>\n

\u201cBitcoin has broken through the $90,000 level, triggering liquidations worth over $1 billion,\u201d Jin noted. \u201cETF outflows have persisted for six consecutive days, surpassing $2.4 billion in February alone.\u201d<\/p>\n

For the moment, we still have no reason to doubt the Federal Reserve\u2019s hawkish stance in delaying expected rate cuts until the second half of 2025. Higher-for-longer interest rates dampen demand for speculative assets like bitcoin, while new US tariffs stoke inflation concerns. (Not everyone is on board with this view, as noted in Truflation\u2019s read above).\u00a0<\/p>\n

Bright spots: Uniswap\u2019s SEC win and Saylor\u2019s Strategy<\/h2>\n

Despite the bearish sentiment, there was a major win for DeFi yesterday: The SEC has dropped its investigation<\/a> into Uniswap. Kevin Rusher, founder of RAAC, sees this as a pivotal moment.<\/p>\n

\u201cThe SEC dropping its investigation into Uniswap isn\u2019t enough to drag the market out of its current hole, but it\u2019s a massive win for crypto,\u201d Rusher said. \u201cThis decision paves the way for a shift from memecoins to projects with real utility.\u201d<\/p>\n

In the long run, more legal clarity<\/a> should provide long-term support for DeFi\u2019s growth.<\/p>\n

Michael Saylor, of course, remains bullish. The newly renamed Strategy<\/a> (still $MSTR) spent nearly $2 billion acquiring 20,356 BTC over the past week. Saylor\u2019s continued accumulation comes as the premium on MSTR shares, relative to its NAV, dropped to its lowest<\/a> point in a year.<\/p>\n

So, buy the dip or expect a deeper correction? Given BTC breaking key support, short-term downside risk remains. Long-term fundamentals \u2014 institutional adoption and regulatory clarity \u2014 still favor crypto. The coming days will be revealing. If BTC fails to reclaim $90,000\u2013$96,000, one would expect a deeper correction into the $70s. But if ETF outflows stabilize and risk appetite returns, bitcoin\u2019s bull market may still have legs.<\/p>\n

\n

Get the news in your inbox. Explore Blockworks newsletters:<\/strong><\/p>\n