The price of Bitcoin has fallen below $90,000, leading to significant losses for traders who entered long positions at higher levels. According to Bybit data, long positions worth over $200 million were liquidated during the first hour of the decline, exacerbating selling pressure and accelerating the price drop.
In contrast, short sellers benefited, with short liquidations reaching around $50 million, indicating a notable response from bearish traders. The market also experienced an increase in trading volume due to panic selling and opportunistic buying, reflecting sharp fluctuations in investor sentiment.
During trading, Bitcoin is currently being traded at levels of $88,466, with a daily decline of 7.65%. Ethereum also dropped by nearly 11% to reach $2,391.
Fear and Greed Index Drops to "Fear" Level Amid Bitcoin Decline The aftermath of the sharp decline has impacted market sentiment, as the Fear and Greed Index fell from the neutral level of 50 to a "Fear" level of 38 during trading on Tuesday, February 25, 2025, according to Alternative.me data. This drop indicates uncertainty among investors and the possibility of continued bearish pressure in the near term. The Relative Strength Index (RSI) for Bitcoin recorded a level of 35 at 10 a.m. UTC, placing the currency in the oversold territory, which is an indicator of potential price rebound according to TradingView data.
Increased Activity on Bitcoin Network Despite Price Decline Despite the sharp drop, network data shows an increase in activity, with the number of active addresses rising by 10% to reach 1.2 million addresses on February 25, 2025, according to Glassnode data. Additionally, transaction volume on the blockchain increased by 15%, reaching 3.5 million transactions in the 24 hours following the decline, compared to 3 million transactions the previous day, according to Blockchain.com data. These figures indicate sustained interest in Bitcoin, which could be a positive indicator for long-term holders.
AI Tokens Affected by Bitcoin Decline, Recording Notable Losses Cryptocurrencies linked to AI technologies did not see significant changes during trading; however, the impact of Bitcoin's decline was evident in their performance. The price of the SingularityNET (AGIX) token fell by 3% to approximately $0.50, according to CoinMarketCap data. This decline illustrates that AI tokens are still moving in accordance with the general market trend, reflecting their close correlation with Bitcoin's movement.
