## Bitcoin’s Recent Price Drop: A Reminder of Market Volatility
After Bitcoin’s recent decline below the $91,000 mark, several prominent advocates of the cryptocurrency have cautioned market participants about the potential for further price corrections in the short term. Nevertheless, the long-term perspective remains optimistic. Notable analyst Ki Young Ju took to X to express that a bear market is unlikely, even amidst the current turmoil. While Ju acknowledges that the target price range is quite broad, he firmly believes that the market is still in a bullish cycle. Drawing on historical data, he noted that the bullish trend could persist even with a 30% drop from Bitcoin’s recent all-time highs. “I don’t think we’ll enter a bear market this year. We’re still in a bull cycle. The price will eventually rise, but the range seems broad. I personally think that the bull cycle could continue even with a -30% dip from ATH (e.g., 110K → 77K), as seen in past cycles,” Ju stated on February 19, 2025.
“It’s pretty normal to see a 30% correction during a bull cycle (Max pain 77K in this case). The Bitcoin bull cycle is not over,” he added through an alternative X account. A V-shaped recovery is anticipated in the coming week, which would further affirm that the market remains in bullish territory. “If we see a V-shaped recovery after this dip (next week or so), then that confirms that we are still in a bull market. Bull markets are characterized by -20% to -30% dips, followed by sharp V-shaped recoveries,” shared PlanB, the creator of Bitcoin Stock-to-Flow, on February 26, 2025. He emphasized that price corrections are essential to eliminate short-term players from the market.
## Factors Influencing Bitcoin’s Price Decline
Bitcoin’s connection to traditional financial markets has seemingly intensified over the years. Risk assets, including cryptocurrencies, have been impacted by fluctuations in the equity market. With the Nasdaq experiencing a 4% drop and the S&P 500 down by 2.3% over the past five days, the global cryptocurrency market cap has also taken a hit, falling to $2.87 trillion after a 2.18% decrease in just one day. According to reports from Bitfinex, demand for Bitcoin’s Spot ETFs has diminished in recent months, with outflows totaling $552.5 million. This trend underscores the influence of institutional players on Bitcoin’s overall performance.
In addition to institutional movements, Santiment has reported that “Bitcoin prices are closely correlated with the behavior of whales and sharks (specifically wallets holding 10+ $BTC).” Over the past week, key stakeholders have offloaded 6,813 coins, marking the largest drop since July. On February 25th, Bitcoin fell below the $91,000 threshold. The leading cryptocurrency has seen an 11% decline over the past week and a 3% drop in the last 24 hours, currently trading at $81,836. On a daily timeframe, the RSI indicates a reading of 26, suggesting that Bitcoin is currently oversold.
