Key Points
- Bitcoin’s price is trembling below $96K, influenced by whale investors and economic uncertainties.
- Despite the bearish sentiment, the Bitcoin market outlook remains robust and bullish for 2025.
Bitcoin’s price began the third week of February on a bearish note. This was due to investors preparing for a more challenging economic landscape amid mid-term uncertainties caused by the United States tariff wars. The leading cryptocurrency saw a decline of around 2% in the last two days, trading at approximately $95.6K on Tuesday, February 18, during the mid-London session.
The fear of further Bitcoin price capitulation has increased, with the BTC fear and greed index dropping to 47% from 51% on Monday. The ongoing sell-the-news event, following the inauguration of US President Donald Trump earlier this year, has affected the entire cryptocurrency industry.
Whale Investors’ Impact on Bitcoin
Market data from Glassnode shows that the capital inflows to Bitcoin have significantly declined by nearly 30% in the past four weeks. In the past week, Bitcoin miners have offloaded about 2K BTCs, reducing the miners’ reserves to 1.8 million.
With over 90% of Bitcoin holders already in profit, the chances of an increased sell-off in the near future are high. According to market data from CoinGlass, the overall supply of Bitcoin on centralized exchanges has increased by about 53.4K BTCs, hovering at 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 about $66 million for all the US spot BTC ETFs.
Possible Price Drop to $92K
Despite a strong bullish trend in Gold price, Bitcoin price continues to experience heightened bearish sentiment. The leading cryptocurrency has been consolidating in a tight horizontal range between $92K and $109K since November 2024. As a result, the chances of BTC price dropping to retest the support level around $92K in the coming weeks are high. If the support level around $92K is breached, a major sell-off towards $75K will be inevitable.
Bitcoin Market Outlook for 2025
Despite the ongoing correction, the Bitcoin market outlook for 2025 remains strong and bullish. The significant adoption by institutional investors has boosted the overall bullish outlook of BTC in the long run. According to Bitcoin Treasuries, a total of 160 entities, led by public companies and spot ETF issuers, hold about 3.11 million BTCs in their treasuries.
The regulatory environment for Bitcoin has significantly improved in major markets, led by the United States and European countries, over the past year. More than 20 states in the United States have proposed bills to adopt strategic BTC reserves.
The Bitcoin network has gradually evolved into a robust DeFi ecosystem, with a total value locked (TVL) of about $6.5 billion. Recently, Tether announced that its USDT will be available on the Bitcoin network, which will further boost its mainstream adoption.
