Bitcoin Crash to $85K: What Happened, Why and How We Capitalized on It | by Gabriel Valor Riverton | Crypto & Trading | The Capital | Feb, 2025

The cryptocurrency market never fails to surprise, and the recent Bitcoin crash to $85K of today 26 February 2025 has certainly sent shockwaves throughout the trading world.

While many investors were left scratching their heads, trying to make sense of the sudden drop, savvy traders were quick to seize opportunities.

As Bitcoin plummeted, the rest of the market followed, leading to unexpected price movements across altcoins.

In this article, we’ll dive into why this crash happened, and more importantly, how we at CryptoSignals.one turned it into gains for our members through short trades on altcoins.

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The Bitcoin crash to $85K might seem sudden, but several key factors contributed to this decline. Let’s take a closer look at why this happened:

Let’s break down some of the most significant reasons behind this crash:

1. Increased Regulatory Pressure: Around the time of the crash, various governments and regulatory bodies, including the U.S. SEC, had increased scrutiny over cryptocurrency markets. Uncertainty surrounding possible future regulations caused panic, leading to significant sell-offs.
2. Macroeconomic Conditions: Rising inflation, fears of recession, and tightening monetary policies in many countries have put pressure on high-risk assets like cryptocurrencies. As global markets struggled, investors began liquidating risky positions to preserve capital, adding to Bitcoin’s downward pressure.
3. Large Whale Sell-Offs: Bitcoin’s price is often influenced by the actions of whales — those who hold significant amounts of the currency. During this crash, several large Bitcoin wallets were observed selling off massive quantities. This created a chain reaction, where large sell-offs triggered more liquidations and panic sales.
4. Leverage and Liquidations: Many traders in the cryptocurrency market use leverage to amplify their positions. As Bitcoin started to fall, many of these leveraged positions were forcibly liquidated by exchanges. This accelerated the crash, as the liquidation of these positions contributed to even more selling pressure.
5. Panic Selling and Sentiment Shift: When Bitcoin began to fall, many retail investors reacted emotionally, leading to panic selling. In cryptocurrency markets, sentiment can shift quickly, and fear of losing further pushed more traders to exit their positions, worsening the sell-off.

While crashes can be nerve-wracking for many investors, they also present opportunities for experienced traders. At CryptoSignals.one, we were prepared for this kind of volatility.

Using our analysis and market insights, we anticipated a drop in Bitcoin’s price and positioned ourselves accordingly with some short trades on select altcoins.

As Bitcoin fell, altcoins followed, giving us excellent opportunities to capitalize on their price movements.

By opening short positions at the right time, our members were able to lock in gains even in a bearish market.

These are some screenshot with P&L:

Here’s how we did it:

1. Identifying Weakness in Altcoins: As Bitcoin began to drop, we carefully analyzed altcoin charts and identified those that were likely to experience sharp declines. Our technical analysis pinpointed key levels of resistance and support, allowing us to enter short positions with minimal risk.
2. Timely Signals: Using our experience and market indicators, we shared real-time signals with our members in our VIP Telegram Channel. These signals provided precise entry and exit points for short trades, ensuring that our members could make informed decisions.
3. Gains from Shorting: While many traders were feeling the effects of the crash, we and our members made gains by shorting altcoins like Ethereum, Solana, and others. The crash provided the perfect opportunity to profit from the price declines, turning a bearish market into a profitable experience.

At CryptoSignals.one, we believe that market downturns can be just as profitable as uptrends — if you know how to trade them.

That’s why we provide our members with expert trading signals and strategies that allow them to navigate even the most volatile markets with confidence.

Want to see how we do it? Join our VIP Telegram Channel and discover the power of accurate, real-time trading signals.

We share daily market insights, signals for Bitcoin, altcoins, and more, helping you make the most out of every market condition — whether it’s bullish or bearish.

In this channel, we share our trade results, tips, and strategies, ensuring you’re always a step ahead of the market.

Don’t miss out on the next profitable trade — join us today and take your trading to the next level.