Bitcoin Falls Below $90,000 as Solana Plummets 50%

Bitcoin and Solana have both experienced significant price corrections, with Bitcoin dropping below $90000 and Solana down 50% from its all-time high.

Bitcoin and Solana have both seen substantial price corrections recently, with Bitcoin dropping below the $90,000 mark and Solana plummeting 50% from its all-time high.

This comprehensive market analysis delves into recent crypto developments, highlighting macroeconomic factors, regulatory shifts, and individual token performance that are shaping the current landscape.

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Crypto market developments

Macroeconomic issues are largely to blame for the increased volatility that the bitcoin market has experienced. A market-wide selloff began after US President Donald Trump confirmed that 25% tariffs on Canada and Mexico were “going forward on time, on schedule.”

This statement came as US consumer confidence decreased to its lowest level since August 2021, adding further challenges for risk assets.

For the industry, some encouraging developments come with regulatory changes. The SEC reportedly shelved its probes into many major cryptocurrency companies, including Uniswap Labs (NYSE:COIN), Coinbase (NASDAQ:COIN), Robinhood Crypto, and OpenSea.

Uniswap termed this occurrence “a huge win for DeFi” that “reaffirms what we have always known – that the technology we build is on the right side of the law.”

In other news, CryptoQuant CEO Ki Young Ju has predicted a selective altcoin season in 2025, suggesting that “most altcoins will not make it” during the next market cycle.

According to Ju, only cryptocurrencies with potential ETF licenses, strong revenue-generating models, and consistent investor attention will outperform, implying that “the era of everything pumping is over.”

Is the crypto market experiencing a ‘tactical retreat’?

Richard Teng, CEO of Binance, described the present state of affairs as a “tactical retreat, not a reversal.”

Teng claims that while they also recover with great resilience, bitcoin markets usually “react to macroeconomic shifts much like traditional assets.”

The mood in the market has quickly shifted to one of great caution. On February 26, the Crypto Fear & Greed Index dropped to 21 out of 100, signifying “Extreme Fear” — a staggering 28-point decrease over only two days.

Likewise, Nansen’s Risk Barometer switched to “Risk-off” following a “Neutral” stance since mid-November.

Despite these concerns, Teng remains optimistic about the industry’s fundamentals.

He highlights the strong demand for crypto ETFs and ongoing US applications for new launches as positive signs. US asset managers have registered for ETFs linked to various cryptocurrencies such as XRP, Cardano, Solana, and Dogecoin since Gary Gensler stepped down as SEC Chair.

Bitcoin dips to 3-month low of $86,050

The price action of Bitcoin (BTC/USD) has been particularly volatile; it fell below $90,000 on February 25 for the first time since November and touched a three-month low of $86,050.

This marks Bitcoin’s biggest quarterly decline of nearly 20% since August 2024, more than twice the average Bitcoin drawdown of 8.9% over the past year.

Technical analysis reveals some alarming warnings. The daily candle for Bitcoin closed below the $92,000 area on February 24, thus confirming a double-top pattern that had been in place for months.

Based on this technical analysis, a potential goal falls between $78,000 and $76,000.

However, not all signs are bearish. Bitcoin’s Relative Strength Index (RSI) dropped below 27, a level not seen since the August 2024 meltdown.

Historically, such extreme oversold scenarios on longer timeframes have presented buying opportunities.

Whales also appear to be accumulating; statistics indicate that 26,430 BTC were deposited to known accumulation addresses on February 24.

Many analysts advise investors to maintain perspective. Bitwise European head of research André Dragosch cited the post-halving performance chart of Bitcoin, which suggests that the majority of its bull market rally is yet to come.

Similarly, researcher Tuur Demeester highlighted that institutional use continues to expand,evidenced by increasing BTC holdings of publicly traded companies.

Solana down by 50% from ATH

Solana (SOL/USD) has been hit especially hard; its native token SOL fell to $131.90 on February 25, its lowest point in five months.

With February’s 42% drawdown, the monthly drop from SOL’s all-time high of $295 set on January 19 comes to 50%.

Several factors suggest that SOL may continue to underperform in the short term:

Solana is also dealing with inflationary pressure—a 10% yearly rate—with about 16.1 million SOL tokens set to be unlocked between February and May 2