Bitcoin Hits Yearly Low

DAILY MARKET OVERVIEW

Tariffs, Outflows, and a Possible Bitcoin Bounce

👋 Hey Crypto Enthusiasts! The market is feeling the heat today as global tensions ramp up. Let’s dive in!

Yesterday’s dip has extended further today with the announcement that Donald Trump will follow through on tariffs against Canada and Mexico after the 30-day suspension expires next week. This news has sparked significant uncertainty, and the market reacted poorly.

The Fear & Greed Index has dropped to extreme fear, indicating that investors are taking a more cautious stance and looking to derisk their positions. The ETF outflows didn’t help either, with Bitcoin seeing a major $539 million in outflows and Ethereum $78 million. As a result, Bitcoin has now dropped to a yearly low of $85,800.

What to Expect This Week:

• Short-Term Relief: We may see a brief relief rally with BTC attempting to retest $95K, but it’s likely to be short-lived if macro uncertainties persist.
  

• Sell-Off After Relief: If market conditions remain volatile, expect a potential sell-off after any short-term recovery.
  

• Altcoins Struggling: Altcoins, especially meme coins, are likely to take a long time to recover, with some not coming back at all.
  

• Caution & Patience: Now is a time to be cautious. Take a step back and evaluate which projects you’re willing to hold for the long-term, as this could mark the start of a prolonged correction or bear market.

The market remains tough to predict, and it’s crucial to stay cautious in these uncertain times. Keep an eye on key levels and be prepared for both short-term relief rallies and potential setbacks. Focus on managing risk and stay patient as we navigate through these turbulent conditions.

As always, we’ll keep you updated with the latest insights to help you make informed decisions.

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TWITTER SENTIMENT

Shift Toward Utility Tokens in a Bearish Market ❓️ 

With the market facing increasing uncertainty, traders are beginning to talk about the potential shift from meme coins to utility-based tokens. After the massive rallies seen by meme coins, this correction is viewed as a much-needed reset for the market.

As the speculative hype dies down, attention is moving toward projects with real utility. This shift could signal a more sustainable focus on long-term projects rather than short-lived speculative trends.

While DeFi has not yet seen a significant resurgence, with HYPE and AAVE seeing some activity, if market conditions improve, we could see renewed interest in DeFi and other utility-focused tokens.

The current sentiment points toward a market where projects with strong use cases are likely to gain more traction. Traders are beginning to focus more on the long-term potential rather than short-term gains.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Ethereum Pectra Upgrade Activated on Holesky Testnet
Ethereum activates the Pectra upgrade on Holesky testnet but faces delays as the network has not yet finalized, pushing back the mainnet timeline.

DOJ Settles with OKX Affiliate for $500 Million
Aux Cayes FinTech reaches a $500M settlement with the DOJ over unlicensed money transmitting activities, impacting OKX’s global operations.

Metaplanet Purchases Additional $12.9M Bitcoin
Metaplanet buys another $12.9M in Bitcoin, bringing its total to 2,235 BTC, and aims to acquire 10,000 BTC by 2025.

Sam Bankman-Fried’s Post Pushes FTT Up 30%
Sam Bankman-Fried’s first post in two years on X sparks a 30% surge in FTT token price, with speculation about his legal future.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

TraderXO – Crypto Market Overview (25.02.2025 Summary)

TraderXO delivered a detailed market breakdown, highlighting Bitcoin’s critical levels, equity market influences, and his cautious approach in the current bearish environment. His main focus is on risk management and patience as uncertainty dominates.

1. Bitcoin’s Critical Levels – Defending 88K or More Downside?

• Bitcoin is currently trapped between $88K and $100K, with increasing pressure to the downside.

• A major concern is Bitcoin’s repeated testing of the 12-week EMA (now at $95K). If it fails to reclaim this level, a move toward $88K is likely.

• If Bitcoin loses $88K, the next major support lies in the $82K–$85K range, with a worst-case scenario targeting $75K.

• XO remains cautious, waiting for a clear reclaim above $95K before considering longs.

2. Equities Selling Off – A Bad Sign for Crypto

• The broader risk-off sentiment is impacting Bitcoin and altcoins as equities, particularly NASDAQ and SPX, are rolling over.

• Tariff news and AI uncertainty are weighing on markets, increasing bearish momentum.

• Bitcoin’s previous resilience is being tested; if equities continue to decline, Bitcoin is likely to follow.

3. Altcoins Are in Freefall – No Signs of Reversal Yet

• Altcoins, especially Solana, are getting crushed. The trend has shifted from sideways to clear downtrend.

• Solana’s $180 level failed, and now the next major area of interest is between $130–$120.

• Ethereum remains structurally weak after breaking $3,000. The likely scenario is further downside toward $2,500–$2,300.

• Meme coins and speculative assets are draining liquidity, accelerating the crash in traditional altcoins.

4. Tactical Approach – Play It Smart, Not Fast

• XO emphasizes patience: the best trades come from waiting for clear setups.

• The market is shifting from rotational to trend-based trading. Now, it’s about respecting the downside momentum.

• Reversal traders should wait for major capitulation signs like aggressive liquidations or failed breakdowns before stepping in.

🔥 Final Take:

Bitcoin’s failure to reclaim key levels, coupled with equities rolling over, suggests further downside risk. XO is playing defensively, focusing on reactionary trading rather than trying to predict reversals. Altcoins remain weak, and the best opportunities will come after proper basing structures, not forced longs in a falling market. The next few weeks will be crucial in determining whether Bitcoin holds $88K or opens the door for much lower prices.

Miles Deutscher – The Crypto Dream Is Dead? (25.02.2025 Summary)

Miles Deutscher provides a sobering yet constructive take on the current market downturn, emphasizing the importance of adapting strategies, staying disciplined, and focusing on opportunities despite the bearish sentiment.

1. The Market Lacks a ‘North Star’ – No Demand, Just Selling

• Crypto is missing a major bullish catalyst, leading to continued declines.

• Without a guiding narrative or strong demand, sell pressure dominates.

• Short sellers are profiting as spot buying remains weak, causing further declines.

• Until a shift happens, whether from macro news, Bitcoin strength, or buyer exhaustion the market will likely keep bleeding.

2. Bitcoin’s Chop Is Exhausting – Time Capitulation in Effect

• Bitcoin has been stuck in a range for over 100 days, frustrating investors.

• This environment benefits short-term traders but punishes long-term holders.

• If Bitcoin stays range-bound for months, it could drive further capitulation.

3. Altcoin Season Failed – Meme Coins and ETFs Changed the Game

• Traditional altcoin cycles didn’t materialize as expected.

• The rise of meme coins from Pump.fun drained liquidity from serious projects.

• Bitcoin ETFs redirected capital into BTC instead of altcoins, breaking the usual rotation cycle.

• As a result, buy-and-hold strategies have struggled, while traders who actively rotate have outperformed.

4. Miles’ Strategy – Trade Smart, Avoid Holding Too Long

• He is focusing on trading setups rather than long-term holds.

• High-timeframe liquidity sweeps and reclamations are his key trade triggers.

• He’s looking for altcoins with real demand rather than speculative plays.

• One area he’s bullish on is the Sonic (Fantom) ecosystem, where airdrop incentives are creating buying pressure.

🔥 Final Take:

The market is brutal, but opportunities still exist for those who adapt. Miles is shifting to an active trading approach, looking for technical setups rather than blindly holding. He emphasizes the importance of discipline over motivation and urges investors to use this time to learn, refine strategies, and focus on assets with real demand rather than gambling on speculative narratives. Until a clear catalyst emerges, expect continued chop and frustration for long-term holders.

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