Bitcoin has once again captured headlines, but this time it’s due to a massive sell-off that has left the market shaken. On February 25, 2025, Bitcoin ETFs recorded their highest-ever single-day outflow, exceeding $937.9 million. This historic outflow was accompanied by major sell-offs from institutional investors, with Fidelity offloading 3,929 BTC worth $349 million and BlackRock selling $165 million in Bitcoin. The sudden price drop has fueled discussions about whether this is the beginning of a bear market or another retracement in Bitcoin’s ongoing bull cycle.

As of February 26, 2025, Bitcoin is trading at $88,812, down from its peak of $109,000 in January 2025. Some analysts are calling this a bear market, while others believe it’s just a retracement. But is this the end of the bull run, or is this just another shakeout before Bitcoin pushes higher? 

The news of major institutions selling Bitcoin has left many investors nervous. BlackRock and Fidelity are some of the largest Bitcoin holders, and their decision to sell such large amounts has led to speculation. Some argue that these sell-offs are a sign of declining confidence in Bitcoin’s short-term price action. Others believe that institutions are merely taking profits and repositioning for a bigger move in the market.

While these sales have certainly impacted Bitcoin’s price, it’s important to consider who is buying. History has shown that whenever institutions sell, whales and long-term holders step in to accumulate more Bitcoin at discounted prices. In previous bull runs, similar dips have been followed by strong recoveries.

Bitcoin’s price action has always been volatile, and this recent drop is no exception. However, if we look at past cycles, we can see that Bitcoin has gone through multiple major corrections before rallying to new highs.

During the 2017 bull run, Bitcoin experienced five corrections of more than 28%, yet it still reached a peak of nearly $20,000. In the 2021 cycle, Bitcoin had several pullbacks of over 20% before eventually hitting an all-time high of $69,000. Even in 2024, Bitcoin saw multiple corrections, including a 30% dip in August, but continued to climb.

The current drop of around 21% is consistent with previous corrections. If history repeats itself, this could be just another temporary shakeout before Bitcoin resumes its upward trend.

Technical analysts are closely watching Bitcoin’s 200-day Exponential Moving Average (EMA), which has historically acted as a key support level. Since the 2022 market reversal, Bitcoin has consistently bounced off this level, indicating that the macrobull trend remains intact.

If Bitcoin holds above the 200-day EMA, it could confirm that this correction is nothing more than a healthy reset before the next leg up. However, if it breaks below this level, traders may start considering the possibility of a deeper correction.

One of the most interesting aspects of this sell-off is the difference in behavior between retail investors and whales. Retail traders tend to panic sell during corrections, fearing that the bull run is over. Meanwhile, Bitcoin whales—large holders with significant amounts of BTC—are often seen accumulating during these dips.

This pattern has played out repeatedly in previous cycles. When Bitcoin fell sharply in May 2021, retail investors rushed to sell, while whales bought up large amounts of BTC at lower prices. A similar trend is unfolding now, suggesting that seasoned investors see this dip as an opportunity rather than a reason to panic.

Despite the recent market turbulence, Bitcoin remains the strongest performer in the crypto space. While BTC has faced a significant sell-off, other sectors are experiencing even steeper losses. AI frameworks have plunged by 84.05%, agents by 70.27%, memecoins by 51.74%, gaming infrastructure by 51.54%, modular projects by 47.48%, and AI & DePIN by 42.48%. 

Compared to these declines, Bitcoin’s resilience stands out. Its dominance in the market remains unshaken, reinforcing its position as the leading asset in the crypto industry. While other sectors struggle to maintain investor confidence, Bitcoin continues to attract institutional and whale buyers who see its long-term value.

Is the Bull Market Over?

Many traders are now wondering if the bull market has officially ended. Some fear that Bitcoin’s 21% correction signals the start of a prolonged downtrend. However, historical data suggests otherwise.

Looking at Bitcoin’s past cycles, major corrections like this have often been followed by massive rallies. The current drop is relatively small compared to previous bear market crashes, where Bitcoin lost over 50% in a matter of weeks. Additionally, Bitcoin’s Relative Strength Index (RSI) is now at its highest oversold level since August 2024, a signal that the market may be due for a rebound.

Bitcoin’s recent sell-off has undoubtedly shaken the market, but long-term investors know that volatility is part of the game. Institutional sales may have contributed to the drop, but history suggests that corrections like this are normal and often present buying opportunities.

With Bitcoin still holding above key support levels and whales accumulating, the bigger picture remains bullish. The crypto market has seen countless downturns before, and each time, it has come back stronger. Whether this dip is a warning sign or a buying opportunity depends on perspective, but one thing is certain: Bitcoin’s story is far from over.