Bitcoin Faces Worst Downturn in 7 Years... Will April Regulatory Changes Be a Turning Point?

▲ Bitcoin (BTC)

Bitcoin (BTC) is threatening the $60,000 support level as it faces its worst decline in seven years. However, regulatory developments within institutional frameworks and behind-the-scenes movements by major institutions are signaling a potential turnaround.

Altcoin Daily, a cryptocurrency-focused YouTube channel, said in a video released on Feb. 24 (local time) that Bitcoin’s market sentiment index has entered an extreme fear stage lower than during past major crashes such as the FTX bankruptcy and the 2018 hard fork period. Analyst Aaron warned that if the current downturn continues through the end of February amid rising claims of Bitcoin’s demise and growing skepticism, it could mark the first time in seven years that Bitcoin posts five consecutive monthly bearish candles. The $60,000 level has been identified as a psychological last line of defense, and concerns are mounting that a breakdown could trigger a further سقوط to the low $50,000 range.

While some influential streamers driving market pessimism are calling Bitcoin useless and encouraging panic selling, others argue that this represents a typical fear-driven marketing strategy exploited by major capital holders seeking to buy at discounted prices. Analyst Sneo emphasized that powerful financial dynasties such as the Rothschilds and Rockefellers have historically absorbed panic-driven sell-offs during periods of extreme global fear, reaping enormous profits. He advised that with Bitcoin currently down 51% from its peak and hovering near bottom levels, investors should manage risk through asset diversification rather than joining panic selling.

Macroeconomic factors, including tariff policy declarations by U.S. President Donald Trump’s administration, are also negatively impacting high-risk assets such as cryptocurrencies. Nevertheless, amid this short-term turbulence, institutional efforts to secure regulatory clarity are accelerating, as seen in the appointment of a former Chainlink (LINK) legal expert to the U.S. Securities and Exchange Commission’s dedicated crypto task force. The White House’s more forward-looking stance on stablecoin incentive policies and the growing likelihood of passing a U.S. cryptocurrency market structure bill are also viewed as positive signals.

ARK Invest CEO Cathie Wood stated that Bitcoin functions effectively in both inflationary and deflationary environments and, considering demand from younger generations and institutions, serves as a far superior store of value compared to gold. The digital asset industry places significance on the mere establishment of regulatory frameworks capable of resolving uncertainty, even if the legislation is not perfect. With institutional participation still in its early stages, analysts predict that substantial capital inflows following regulatory clarification could reshape the market landscape.

Although Bitcoin is currently experiencing severe volatility while confirming a technical bottom, the broader trend toward the evolution of financial infrastructure and institutional integration remains intact. Market participants are advised to focus less on short-term price fluctuations and more on the congressional progress of the U.S. cryptocurrency market structure bill and trends in institutional capital inflows as they prepare for the next rally. The current growing pains occurring as digital assets become integrated into the global financial system are ultimately expected to serve as a necessary rite of passage toward qualitative market growth.

Disclaimer: This article is for investment reference purposes only, and no responsibility is assumed for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.