Amid Regulatory Uncertainty and Whale Sell-Offs, Bitcoin’s Recovery to $70,000 Remains Uncertain

▲ Bitcoin (BTC) decline/AI-generated image

The cryptocurrency market is facing downward pressure as major assets move lower, weighed down by large-scale profit-taking by whale investors and dampened sentiment stemming from regulatory uncertainty.

According to cryptocurrency-focused outlet BeInCrypto on February 23 (local time), the broader digital asset market, including Bitcoin (BTC), has entered a correction phase following recent record highs, driven by profit-taking and market fatigue. Data from Santiment shows that whale investors and miners realized approximately $3.5 billion in profits, absorbing market liquidity and contributing significantly to the decline. As prices approached psychological resistance levels, investors opted to secure cash rather than bet on further gains, accelerating the broader sell-off.

Macroeconomic and regulatory headwinds have also cooled market sentiment. Reports that the U.S. Secret Service seized approximately $400 million worth of digital assets, along with mounting anticipation ahead of a forthcoming White House crypto report, have weighed on investor confidence. Concerns over intensifying regulatory pressure have slowed institutional capital inflows, pushing the market into a temporary risk-off phase. This uncertainty has directly impacted not only Bitcoin but also major altcoins such as Ethereum (ETH) and Solana (SOL).

From a structural standpoint, large-scale liquidations have acted as a catalyst for deeper losses. After Bitcoin fell below the key support level of $68,000, leveraged investors holding long positions faced forced liquidations, triggering a chain reaction of selling pressure. Bitcoin is now testing support around the $64,000 level, and a breakdown below this zone could accelerate the downward trend further. Ethereum has also extended its decline, slipping below the $1,900 mark, prompting increased caution among investors.

Experts assess that the market now stands at a critical juncture that will determine whether the current pullback remains a healthy correction or develops into a prolonged bear market. While major corporations such as Strategy continue to hold substantial amounts of Bitcoin, providing some support to the market, any additional negative developments could drive prices into a deeper slump. Market participants are adopting a conservative approach, focusing on whether key support levels can hold rather than anticipating a short-term rebound.

The cryptocurrency market remains highly sensitive to global economic indicators and government regulatory policies, with heightened volatility expected to persist for the time being. Debate continues over whether the current downturn reflects routine profit-taking or the beginning of a structural decline, as investor sentiment indices fall sharply. Investors are advised to closely monitor real-time on-chain data and trading volume changes while prioritizing risk management.

Disclaimer: This article is for investment reference only and we are not responsible for any losses incurred based on its contents. The information provided should be interpreted solely for informational purposes.