Bitcoin falls below $90,000, 2025 bear market warning and retail investor survival guide

Article highlights

• Research shows that the price of Bitcoin falling below $90,000 may indicate a potential bear market, and ordinary users need to take steps to protect their assets.
• The evidence tends to suggest diversification, setting stop-loss orders, and using stablecoins to reduce risk.
• Market dynamics are complex, influenced by equity market pressures, ETF outflows and geopolitical tensions.

Market Overview: Sluggish Performance

As of February 26, 2025, the price of Bitcoin has fallen to around $88,000, and other cryptocurrencies are also falling. The overall crypto market sentiment has returned to the low point of 2024. The reasons for this market decline include selling pressure in the equity market, capital outflows from Bitcoin ETFs, the $1.5 billion Ethereum hack of the Bybit exchange, and the uncertainty of US-China trade tensions and US tariff policies. These factors have jointly created a risk-averse market environment that has affected the entire cryptocurrency market.

Bitcoin's "Black Tuesday" is here: Multiple negative factors break through the $90,000 bottom

On "Black Tuesday" on February 25, 2025, Bitcoin fell below the psychological barrier of $90,000 for the first time since November 2024, and finally closed at $87,169, a single-day drop of 7.25%. This crash was 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 imports starting in March, causing U.S. bond yields to plummet to a two-month low and accelerating the withdrawal of global capital from risky assets. DZ Bank analyst Marcel Heinrichsmeier pointed out: "The risk aversion caused by the tariff policy directly triggered a chain sell-off of cryptocurrencies."

• A crisis of regulatory confidence

The theft of $1.5 billion in Ethereum from the Bybit exchange continues to ferment. Although the platform quickly initiated insurance claims, Elliptic research shows that the stolen amount has exceeded 2.4 times the $625 million incident of Ronin Network in 2022, severely damaging the market's trust in centralized exchanges.

• Fund withdrawal

Bitcoin ETF has experienced net outflows for six consecutive days, with the outflow on the 24th exceeding $516 million, setting a record since the product was listed in January 2024. LSEG data shows that the top ten ETFs have lost a total of $644 million this month, indicating that institutional investors are re-evaluating their allocation of crypto assets.

Future trends: key indicators in the second half of 2025

Market analysts generally believe that the Federal Reserve's interest rate meeting in mid-March and the G20 Finance Ministers' Summit will be key turning points. Despite the short-term haze, derivatives market data show that Bitcoin futures expiring in December 2025 still maintain a premium of $103,000, suggesting that institutions have basic confidence in long-term value.

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

Detailed strategies to protect your assets

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

➡️ HODL

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

Pros: Potential for higher returns if the market eventually recovers.

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

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

➡️Diversified investment

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

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

Disadvantages: Requires understanding of multiple assets, and management costs are high.

Applicable scenarios: Suitable for users with certain investment experience who need to evaluate their portfolio regularly.

➡️Cost-cost averaging (DCA)

Explanation: Investing a fixed amount at regular intervals, regardless of price, helps accumulate assets at lower prices during a bear market.

Advantages: Reduces average purchase cost and is suitable for periods of market volatility.

Disadvantages: Requires continuous investment of funds, which may not be suitable for users with limited funds.

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

➡️Stop Loss Order

Explanation: Setting an automatic sell order that is triggered when the price drops to a certain level, limiting potential losses.

Advantages: Effectively manage risks and prevent large losses.

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

Applicable scenarios: Suitable for risk-averse investors who need to set a reasonable stop loss point.

➡️Transfer to stablecoin

Explanation: Convert part or all of your crypto assets into stablecoins pegged to the U.S. dollar (such as USDT, USDC) to preserve value and hedge risks.

Pros: Provides stability during times of extreme market volatility.

Disadvantage: Potentially miss out on gains from a market rebound.

Applicable scenarios: Suitable for short-term risk hedging, and attention should be paid to the credibility and reserves of stablecoins.

➡️Staking or yield farming

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

Advantages: Even if the market falls, you can still get a certain amount of income to offset some of the losses.

Disadvantages: Involves smart contract risks, and the returns may not be enough to cover the depreciation of assets.

Applicable scenarios: Suitable for users who are familiar with DeFi and need to evaluate the security of the protocol.

➡️Risk Management

Explanation: Adjust your portfolio based on your personal risk tolerance to ensure your decisions are consistent with your financial situation.

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

Disadvantages: Requires continuous monitoring of the market, and adjustments may increase transaction costs.

Applicable scenarios: Suitable for all users, risk appetite needs to be assessed regularly.

Conclusion

As Bitcoin falls below $90,000, ordinary users need to adopt diversified investments, stop-loss orders and stablecoin strategies to protect their assets, while paying attention to safe 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.