Crypto market shaken as Bitcoin drops over 20% from its peak: Is this the start of a bear phase?
Bitcoin has fallen sharply, dropping over 20% from its January peak of $109,350, raising concerns about whether the crypto market has entered a bear phase.
On Thursday, February 27, Bitcoin hit an intraday low of nearly $83,000 before recovering to around $85,000. The sell-off has wiped out nearly $300 billion in market value, leading to increased volatility and investor anxiety.
Is crypto in a bear market?
Avinash Shekhar, Co-Founder & CEO of Pi42, believes that Bitcoin’s decline below $85,000 is the largest sell-off of 2025, with over 79,000 BTC sold at a loss in just 24 hours. “The crypto market has entered a bear phase with Bitcoin declining over 20% from its January peak of $109,350 to an intraday low of $83,740. ETF outflows and Trump’s EU tariff threats have further pressured the market, and BTC could experience a potential drop to $74K,” Shekhar said.
Adding to the uncertainty, altcoins have also suffered, with XRP’s open interest hitting its lowest level in 2025. Institutional selling and macroeconomic instability have shaken confidence, raising questions about whether this is a temporary correction or the start of a prolonged downturn.
Also Read: Bitcoin is a bubble and will blow up someday, says Jim Rogers
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