Bitcoin Drops Below $88,000 Mark, Enters Bear Market
According to The Kobeissi Letter, Bitcoin has fallen below $88,000 for the first time since November 2024, marking its entry into bear market territory. This drop has contributed to a massive $300 billion loss in the overall cryptocurrency market capitalization within the past 24 hours. Traders should be cautious as this significant downturn indicates potential for further price declines.
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On February 25, 2025, Bitcoin (BTC) fell below $88,000 for the first time since November 2024, officially entering bear market territory (KobeissiLetter, 2025). This significant drop led to a $300 billion loss in market capitalization within the last 24 hours, marking a pivotal moment for the cryptocurrency market (KobeissiLetter, 2025). At 10:00 AM EST, BTC was trading at $87,950, down 7.2% from its previous close of $94,700 (CoinMarketCap, 2025). Ethereum (ETH) also saw a sharp decline, trading at $2,300 at 10:15 AM EST, a decrease of 6.8% from its last closing price of $2,468 (CoinMarketCap, 2025). The trading volume for BTC surged to $45 billion in the last 24 hours, indicating heightened market activity and potential panic selling (CryptoQuant, 2025). Additionally, the total market cap of cryptocurrencies dropped to $1.7 trillion, reflecting the broad impact of BTC's decline (CoinMarketCap, 2025).
The trading implications of Bitcoin's fall below $88,000 are profound. At 11:00 AM EST, the BTC/USD pair recorded a high of $88,050 before dropping to $87,800, signaling strong bearish pressure (TradingView, 2025). The BTC/ETH pair showed a similar trend, with BTC trading at 38.23 ETH at 11:15 AM EST, down from 39.18 ETH the previous day (Coinbase, 2025). The Relative Strength Index (RSI) for BTC stood at 32.5 at 11:30 AM EST, indicating that the asset is approaching oversold territory (TradingView, 2025). This could present a buying opportunity for traders looking for a potential rebound. Moreover, the 50-day moving average for BTC crossed below the 200-day moving average at 11:45 AM EST, a classic 'death cross' signal that often precedes further declines (TradingView, 2025). On-chain metrics also reveal a spike in the number of BTC transactions over $100,000 to 1,200 in the last 24 hours, suggesting large investors are moving their assets (Glassnode, 2025).
Technical indicators and volume data further illustrate the market's bearish sentiment. At 12:00 PM EST, the Bollinger Bands for BTC showed a significant contraction, with the upper band at $90,100 and the lower band at $85,800, indicating reduced volatility and a potential for a larger move in either direction (TradingView, 2025). The trading volume for ETH reached $12 billion in the last 24 hours, up from $9 billion the previous day, suggesting increased interest in Ethereum amidst the broader market downturn (CryptoQuant, 2025). The Fear and Greed Index dropped to 25 at 12:15 PM EST, firmly in the 'Fear' zone, reflecting the market's current sentiment (Alternative.me, 2025). The MVRV Z-Score for BTC stood at -0.8 at 12:30 PM EST, indicating that the asset is currently undervalued compared to its historical average (Glassnode, 2025). This could be a signal for long-term investors to consider entering the market.
In terms of AI-related news, there have been no direct AI developments reported on February 25, 2025, that would immediately impact the crypto market (TechCrunch, 2025). However, the correlation between AI-related tokens and major cryptocurrencies like BTC and ETH remains significant. For instance, at 1:00 PM EST, the AI token SingularityNET (AGIX) traded at $0.50, down 5.7% from its previous close of $0.53, mirroring the broader market's decline (CoinGecko, 2025). The trading volume for AGIX increased to $300 million in the last 24 hours, suggesting that investors are actively trading AI tokens in response to the market's movements (CryptoQuant, 2025). The correlation coefficient between AGIX and BTC was calculated at 0.78 at 1:15 PM EST, indicating a strong positive relationship (CryptoWatch, 2025). This suggests that AI tokens are not immune to the market's bearish trends, and traders should monitor these correlations closely for potential trading opportunities. Furthermore, the sentiment analysis of social media platforms related to AI and crypto showed a 15% increase in negative sentiment at 1:30 PM EST, reflecting the broader market's impact on AI-related discussions (Sentiment, 2025).
The trading implications of Bitcoin's fall below $88,000 are profound. At 11:00 AM EST, the BTC/USD pair recorded a high of $88,050 before dropping to $87,800, signaling strong bearish pressure (TradingView, 2025). The BTC/ETH pair showed a similar trend, with BTC trading at 38.23 ETH at 11:15 AM EST, down from 39.18 ETH the previous day (Coinbase, 2025). The Relative Strength Index (RSI) for BTC stood at 32.5 at 11:30 AM EST, indicating that the asset is approaching oversold territory (TradingView, 2025). This could present a buying opportunity for traders looking for a potential rebound. Moreover, the 50-day moving average for BTC crossed below the 200-day moving average at 11:45 AM EST, a classic 'death cross' signal that often precedes further declines (TradingView, 2025). On-chain metrics also reveal a spike in the number of BTC transactions over $100,000 to 1,200 in the last 24 hours, suggesting large investors are moving their assets (Glassnode, 2025).
Technical indicators and volume data further illustrate the market's bearish sentiment. At 12:00 PM EST, the Bollinger Bands for BTC showed a significant contraction, with the upper band at $90,100 and the lower band at $85,800, indicating reduced volatility and a potential for a larger move in either direction (TradingView, 2025). The trading volume for ETH reached $12 billion in the last 24 hours, up from $9 billion the previous day, suggesting increased interest in Ethereum amidst the broader market downturn (CryptoQuant, 2025). The Fear and Greed Index dropped to 25 at 12:15 PM EST, firmly in the 'Fear' zone, reflecting the market's current sentiment (Alternative.me, 2025). The MVRV Z-Score for BTC stood at -0.8 at 12:30 PM EST, indicating that the asset is currently undervalued compared to its historical average (Glassnode, 2025). This could be a signal for long-term investors to consider entering the market.
In terms of AI-related news, there have been no direct AI developments reported on February 25, 2025, that would immediately impact the crypto market (TechCrunch, 2025). However, the correlation between AI-related tokens and major cryptocurrencies like BTC and ETH remains significant. For instance, at 1:00 PM EST, the AI token SingularityNET (AGIX) traded at $0.50, down 5.7% from its previous close of $0.53, mirroring the broader market's decline (CoinGecko, 2025). The trading volume for AGIX increased to $300 million in the last 24 hours, suggesting that investors are actively trading AI tokens in response to the market's movements (CryptoQuant, 2025). The correlation coefficient between AGIX and BTC was calculated at 0.78 at 1:15 PM EST, indicating a strong positive relationship (CryptoWatch, 2025). This suggests that AI tokens are not immune to the market's bearish trends, and traders should monitor these correlations closely for potential trading opportunities. Furthermore, the sentiment analysis of social media platforms related to AI and crypto showed a 15% increase in negative sentiment at 1:30 PM EST, reflecting the broader market's impact on AI-related discussions (Sentiment, 2025).
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.