Bitcoin (BTC) saw a sharp 21.3% decline between Feb. 21 and Feb. 28, briefly dipping to $78,300—a level last seen in November 2024. The drop triggered over $1.6 billion in leveraged long liquidations, intensifying market volatility as exchanges forcefully sold contracts. This $21,210 plunge stands as Bitcoin’s steepest seven-day decline on record.
Despite the downturn, many analysts view this correction as a major buying signal. Citing key factors such as evolving regulations, sovereign investment interest, on-chain indicators, and growing ties with traditional finance—including banks accepting BTC as collateral—experts suggest the price drop presents a unique accumulation opportunity.
Crypto researcher User Obviously_Obv, associated with Sigil Fund’s Web3 division, described the market movement as a classic “bear trap.” He pointed out that the Crypto Fear & Greed Index recently hit its lowest point since 2022, reinforcing the idea that panic selling may be overblown. He also speculated that Bitcoin acquisitions by global government entities—not just the U.S.—are imminent.
Eric Weiss, CEO of Blockchain Investment Group LP, referenced a Tephra Digital report detailing upcoming catalysts that could drive Bitcoin’s next rally. Among them is the introduction of in-kind creation and redemption for U.S. Bitcoin ETF issuers, which would improve liquidity and price stability. Another critical development could be Bitcoin’s classification as a strategic reserve asset, enabling institutions to use BTC holdings as collateral—akin to gold. Increased sovereign wealth fund participation and banks facilitating direct BTC sales are also seen as bullish indicators.
Meanwhile, User apsk32, an engineer and Bitcoin advocate, linked the current market cycle to historical four-year trends. According to his projections, Bitcoin could be on course to hit $230,000–$290,000 by December 2025. He urged investors to seize the moment, stating that accumulating BTC at these levels is a fleeting opportunity. On-chain data suggests that long-term holders were not responsible for Bitcoin’s dip below $80,000, increasing the likelihood of a quick rebound above $95,000.
CarlBMenger, author of Carl ₿ Menger’s Newsletter, highlighted that 74% of realized Bitcoin losses came from investors who entered the market within the last month. This suggests that inexperienced traders are capitulating under pressure, whereas seasoned investors remain unfazed.
Adding to the discussion, Luke Broyles, a contributor at Blockware Mining, proposed an intriguing scenario: a single publicly traded U.S. company could purchase 84,090 BTC, making it the second-largest corporate holder after Strategy (formerly MicroStrategy), which owns 499,096 BTC. Even a 20% allocation of GameStop’s reserves at $85,000 per BTC would secure 11,765 BTC, placing it among the top institutional holders.
Ultimately, multiple analysts agree that Bitcoin’s fundamentals remain intact despite the broader macroeconomic challenges. Its censorship-resistant and scarce nature continues to drive long-term demand. With deeper financial system integration and increasing institutional interest, BTC’s path to surpassing $100,000 appears inevitable.
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