Crypto turn to risk-off – Bitcoin corrects 20% since top

In the world of tech stocks, a drop of 10% is usually seen as a correction, for Bitcoin a drop of 20% is used as the benchmark. Ever since Donald Trump’s first day in office, when Bitcoin was trading at around $105,000, the largest of the cryptocurrencies has already fallen by around 20%, meaning we saw a correction for the first time in a long time this week. Meanwhile, global stock markets appear to be going risk-off due to geopolitical uncertainty.

Correction

Not since November 2024 has Bitcoin traded below $90,000, therefore it was understandable that we saw a slight panic on the crypto exchanges this week. Of course, that fall also came just after the weekend in which President Donald Trump once again threatened with import tariffs (this time on the EU), in which the United States sided with Russia during an important UN resolution vote and in which Ukraine was asked to give up its minerals while European countries realized that they would have to invest more in defense in the future.

This is the area for #Bitcoin to hold on to.

If it doesn’t, then we’re going to be seeing a correction all the way towards $70K.

I think we’ll hold. The cycle hasn’t provided 30% corrections as of yet. pic.twitter.com/aTMxs5B9dG

— Michaël van de Poppe (@CryptoMichNL) February 26, 2025

All this geopolitical turmoil resulted in investors who briefly seemed to take their risk money off the table. Technology stocks, which usually trade in correlation with Bitcoin, fell earlier this week.

Fears of rising inflation are also causing investors to take a step back.

“On the surface, this is about weak data and the uncertainty stemming from the Trump administration’s policy agenda and how that may impact economic activity,” Kyle Rodd, a senior market analyst at Compital Australia, explained.

TRUMP PROMISED US A STRATEGIC #BITCOIN RESERVE.

HE GAVE US A TRADE WAR INSTEAD.

WHAT KIND OF SCAM IS THIS!!! pic.twitter.com/TR2DtcHHbe

— Crypto Rover (@rovercrc) February 26, 2025

Support

In the following days, it will be especially important to see where the support line for Bitcoin is. According to analysts, many Whales are lurking if Bitcoin were to fall to the $75,000 point in the coming days. That would mean a further decline of some 15%.

Among the altcoins, the decline of Dogecoin is particularly striking. It has already lost some 50% since the temporary peak in November. The mostly negative news about ‘Doge’ in the press (the department led by Elon Musk that currently seems to mainly be firing civil servants) may be correlated with this.