Bitcoin Fears Drop to $60,000 Amid Regulatory Roadblocks as Retail Investors Sell and Whales Go Quiet

▲ Bitcoin Bear Market (Downtrend)

The virtual asset market is experiencing unprecedented turmoil amid the threat of Bitcoin (BTC) falling below $60,000 and difficulties in negotiations over the U.S. cryptocurrency market structure bill.

On February 24 (local time), Paul Barron, host of the cryptocurrency-focused YouTube channel Paul Barron Network, diagnosed the severe crisis in which $2.2 trillion in market capitalization has evaporated from the virtual asset market. Citing survey results indicating a 78% probability that Bitcoin could fall to $59,000 this week, Barron noted that uncertainty is once again intensifying among retail investors. A series of negative developments has completely broken the market’s psychological support levels.

U.S. President Donald Trump’s tariff policies and refund issues are key factors increasing financial uncertainty for companies. California Governor Gavin Newsom criticized Trump’s tariffs, saying they are destroying the U.S. economy, slowing GDP growth, and fueling inflation. Analysis showing that the household economic burden caused by tariffs could reach $700 by 2026 is spreading concerns over weakened consumer sentiment and a potential recession.

Negotiations over the U.S. cryptocurrency market structure bill (CLARITY), the top concern of the digital asset industry, are also facing obstacles. Although a dramatic agreement between the banking sector and the crypto industry had been anticipated over the weekend, sudden negotiation difficulties have reduced the likelihood of the bill’s passage to 50%. Signs that traditional banks are attempting to regain the initiative within the White House are shaking the once crypto-friendly regulatory environment at its core.

Capital is rapidly moving away from uncertainty and into traditional safe-haven assets such as gold and silver. As gold prices surpass $5,200 and challenge the dollar’s status as a global reserve asset, the virtual asset market is struggling without clear direction. Strategy Chairman Michael Saylor has emphasized the importance of long-term investment, citing past examples such as Amazon and Apple, but the immediate threat of Bitcoin losing the $60,000 support level is pushing investors into extreme fear.

This summer, the virtual asset market is expected to experience extreme volatility depending on the passage of the U.S. cryptocurrency market structure bill and the results of the midterm elections. With Trump’s unpredictable policy moves colliding with a counteroffensive from traditional financial institutions, the crypto industry faces an unprecedented test. Investors must focus on careful risk management while monitoring geopolitical risks and policy stability.

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