Bitcoin fell below the $90,000 mark, 2025 bear market warning and retail investors' survival guide

Key points of the article

• Research shows that Bitcoin price drop below $90,000 may indicate a potential bear market, and ordinary users need to take measures to protect their assets.
• Evidence tends to recommend diversified investments, setting stop loss orders and using stablecoins to reduce risk.
• Market dynamics are highly complex due to equity market pressure, ETF outflows and geopolitical tensions.

Market Overview: Sluggish performance

As of February 26, 2025, the price of Bitcoin fell to around $88,000, and other cryptocurrencies were also falling. The sentiment of the entire crypto market returned to its 2024 low. The reasons for this market decline include selling pressure in the equity market, capital outflow of Bitcoin ETFs, the hack of the $1.5 billion Ethereum on Bybit Exchange, and the U.S.-China trade tensions and uncertainty in U.S. tariff policies. These factors have jointly created a risk aversion market environment and affected the entire cryptocurrency market.

**Bitcoin 's "Black Tuesday": Multiple negative news breaks through

$90,000 bottom**

On "Black Tuesday" on February 25, 2025, Bitcoin fell below the $90,000 psychological defense line for the first time since November 2024, and finally closed at $87,169, a single-day drop of 7.25%. This crash is not driven by a single event, but the superposition effect of multiple risk factors:

• Macroeconomic policy pressure

The Trump administration announced that it would impose a 25% tariff on Canadian and Mexican imported goods from March, causing the yield on U.S. Treasury plunge to a two-month low, and global capital accelerated its withdrawal of risky assets. "The risk aversion caused by tariff policies has been directly exposed to chain sell-offs in cryptocurrencies," said DZ Bank analyst Marcel Heinrichsmael.

• Regulatory confidence crisis

The stolen incident of Ethereum on Bybit Exchange's $1.5 billion continues to ferment. Although the platform quickly launched insurance compensation, Elliptic research shows that the amount of the stolen money has exceeded 2.4 times the stolen $625 million incident in 2022, hitting the market's trust in centralized exchanges.

• Fund withdrawal wave

Bitcoin ETFs have net outflows for six consecutive days, with a single-day outflow exceeding US$516 million on the 24th, setting a record high since the product was launched in January 2024. LSEG data shows that the top ten ETFs lost $644 million in cumulative blood loss this month, indicating that institutional investors are reevaluating crypto asset allocation.

Future trends: Key indicators for the second half of 2025

Market analysts generally believe that the Fed interest rate meeting and the G20 Treasury Secretary Summit in mid-March will be a key turning point. Although the short-term haze has not dissipated, derivatives market data show that Bitcoin futures that expire in December 2025 still maintain a premium of $103,000, suggesting basic confidence in institutions in long-term value.

Time node

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Observation indicators

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Expected impact

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March 2025

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Fed interest rate decision

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If interest rate hikes are suspended, it may rebound positively

June 2025

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EU MiCA regulation is fully implemented

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May trigger short-term liquidity tightening

September 2025

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Bitcoin halving cycle effect starts

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Historic bullish signals

"Investors should pay attention to dynamic changes in Bitcoin production costs," advised Galxe co-founder Charles Wayne. "When the price falls below the miner's shutdown price (currently estimated at $78,000), it often means the market bottom is approaching."

Detailed strategies for protecting assets

With the current market downturn, macroeconomic pressures and regulatory uncertainty may continue to affect market sentiment. During market volatility, here are strategies that ordinary users can adopt to reduce risks and protect assets:

➡️ Hold (HODL)

Explanation: HODL means "hold to the end", that is, no matter what the market fluctuates, you will choose to hold it and believe in the long-term value of the asset.

Advantages: If the market eventually recovers, it may achieve higher returns.

Disadvantages: If the market continues to decline, asset value may shrink further.

Applicable scenarios: Suitable for long-term investors and need to be mentally prepared to deal with short-term fluctuations.

➡️Diverable Investment

Explanation: Spread assets to different types, such as other cryptocurrencies (such as Ethereum, Solana), traditional stocks or bonds, reducing the risk of volatility of a single asset.

Advantages: Reduce dependence on a single asset and reduce overall risk.

Disadvantages: You need to understand a variety of assets, and the management cost is high.

Applicable scenarios: Suitable for users with certain investment experience, and the combination needs to be evaluated regularly.

➡️Cost Average Method (DCA)

Explanation: Regular investment in fixed amounts, regardless of price, helps accumulate assets at lower prices in bear markets.

Advantages: Reduce the average purchase cost and is suitable for market volatility periods.

Disadvantages: Continuous investment of funds may not be suitable for users with limited funds.

Applicable scenarios: Suitable for users with stable cash flow, long-term investment strategy.

➡️Stop Loss Order

Explanation: Set up automatic sell orders, triggering when the price drops to a specific level, limiting potential losses.

Advantages: Effectively manage risks and prevent large losses.

Disadvantages: Short-term market fluctuations may lead to early triggering and missed rebound opportunities.

Applicable scenarios: Suitable for risk-averse investors, reasonable stop loss points must be set.

➡️Transfer to stablecoin

Explanation: Convert some or all of crypto assets into stablecoins pegged to the US dollar (such as USDT, USDC), and maintain value and avoid safeguarding.

Advantages: Provides stability when the market fluctuates violently.

Disadvantages: May miss the benefits brought by the market rebound.

Applicable scenarios: suitable for short-term risk aversion, and you need to pay attention to the credibility and reserves of stablecoins.

➡️Pledge or income farming

Explanation: Earn passive income by holding certain cryptocurrencies or participating in DeFi protocols, such as pledging Ethereum or providing liquidity.

Advantages: Even if the market falls, you can obtain a certain amount of income and offset some losses.

Disadvantages: It involves smart contract risks, and the returns may not be enough to cover asset depreciation.

Applicable scenarios: Suitable for users familiar with DeFi, the security of the protocol needs to be evaluated.

➡️Risk Management

Explanation: Adjust the portfolio based on personal risk tolerance to ensure decisions are in line with financial status.

Advantages: Helps make decisions that suit your own situation and reduces psychological stress.

Disadvantages: Continuous monitoring of the market is required, and adjustments may increase transaction costs.

Applicable scenarios: Suitable for all users, and risk preferences need to be evaluated regularly.

Conclusion

Against the backdrop of Bitcoin falling below $90,000, ordinary users need to adopt diversified investment, stop-loss orders and stablecoin strategies to protect assets, while focusing on secure storage and information updates. Through reasonable planning and risk management, users can reduce losses in a potential bear market and wait for the market to recover.