Bitcoin Slumps to a 3-month low —Will Macroeconomic Factors Ignite a BTC Comeback?

• Bitcoin’s sharp decline to a three-month low is driven by macroeconomic concerns, including new U.S. trade tariffs and a broader decline in risk assets.
• Regulatory scrutiny, including the $500 million OKX settlement, has intensified investor caution, making a short-term BTC recovery uncertain but possible if conditions improve.

Falling from $95,930 to $86,010 between February 24 and February 25, 2025, Bitcoin’s price has sharply declined, marking a 10.7% drop and its lowest level since November 2024. In addition to today’s CNF update highlighting that Standard Chartered predicts more pain for Bitcoin, this sudden downturn has resulted in over $760 million in leveraged long liquidations.

As the breaking Bitcoin’s critical $90,000 support level and raising concerns about the sustainability of its bull run, according to CoinMarketCap, Bitcoin (BTC) is currently trading at $88,216, reflecting a 0.97% decrease in the past day and an 8.38% decline over the past week. See BTC price chart below.

Meanwhile, crypto-related stocks have also suffered, with MicroStrategy (MSTR) dropping 11.41%, according to a Barron’s update shared that:

Other crypto stocks were also falling: Crypto exchange Coinbase Global has declined 7.4% and trading platform Robinhood Markets has slumped 10.4%.

Macroeconomic Factors Weighing on Bitcoin

As previously reported by CNF, Bitcoin’s price has shown sensitivity to global political events, including assassination attempts on former President Donald Trump. Similarly, economic instability and trade policies have significantly impacted the market.

One major factor driving the recent sell-off is growing investor concern over global economic stability. U.S. President Donald Trump’s new trade tariffs—which include 25% tariffs on imports from Canada and Mexico and 10% tariffs on Chinese goods starting in March—have triggered fears of a slowing economy. As a result, investors have pulled back from riskier assets like Bitcoin.

Regulatory and Market Pressures Add to Sell-Off

Beyond macroeconomic uncertainties, regulatory actions have intensified selling pressure. A recent $500 million settlement between cryptocurrency exchange OKX and the U.S. Department of Justice has heightened regulatory scrutiny on the industry.

Reports suggest OKX facilitated billions in questionable transactions, further fueling concerns over illicit financial activities and making institutional investors more cautious.

Is a Bitcoin Recovery on the Horizon?

Despite bearish sentiment, analysts believe Bitcoin could recover if economic conditions stabilize and regulatory uncertainty eases. Some experts suggest that if central banks introduce stimulus measures to counteract recession risks, Bitcoin’s scarcity and censorship resistance could reignite investor interest.

However, whether BTC can reclaim the $95,000 level in the coming weeks remains uncertain, leaving the community closely monitoring market developments.