Institutional investors are becoming a driving force behind Bitcoin’s price movements, according to Singapore-based blockchain firm Matrixport. In a February 26 X post, the firm noted that while Bitcoin’s market dominance remains at 60%, its price trends are now closely mirroring BlackRock’s IBIT ETF, highlighting Wall Street’s growing presence in the crypto market.
Today’s #Matrixport – Feb 26 2025
Wall Street’s Influence on #Bitcoin: Key Levels to Watch#Crypto #BTC #BTCETF #CryptoMarket @BlackRock pic.twitter.com/oEH14nr5CZ— Matrixport Official (@Matrixport_EN) February 26, 2025
Adding to market uncertainty, Matrixport pointed to Trump’s proposed tariffs and a potential six-month delay in the Bitcoin Strategic Reserve consultation as factors that may have triggered a “technical topping formation.” Analysts now see $73,000 as Bitcoin’s next key support level, suggesting the possibility of further downside.
The broader market reflects these shifts. Coinglass data from February 26 revealed that 230,000 traders were liquidated in the past 24 hours, with open interest dropping by 5%, signaling widespread deleveraging.
Exchange inflows surged 14.2%, pointing to increased panic selling, while negative funding rates indicate growing bearish sentiment.
Meanwhile, on-chain data from IntoTheBlock shows that 12% of Bitcoin addresses are now holding at a loss, the highest level since October 2024. With investors who bought near the all-time high of $108,000 now underwater, the risk of further sell-offs is increasing.
However, recent data indicates that since early 2025, Bitcoin has shown greater resilience compared to other crypto sectors. Ethereum, Solana, and industry-specific niches such as AI frameworks, agent-based projects, and meme coins have suffered steeper losses.
Traditional markets have also reacted. On February 25, Bitcoin fell below $90,000 for the first time since November, sending crypto stocks into decline. MicroStrategy (MSTR), Bitcoin’s largest corporate holder, dropped over 5%, while Coinbase (COIN) lost nearly 3%. Crypto mining stocks, including Riot Platforms (RIOT) and Marathon Digital (MARA), fell more than 4%.
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