Crypto bloodbath end wen?🩸

Here’s why people are still bullish that Bitcoin will hit $200,000

February 28, 2025

Hi! Eric here, 

The crypto class of 2025 had a rude awakening, as Bitcoin and other tokens shed over 13% of its total market value — representing about $450 billion — over the past week.

It’s now down to its lowest since November, as $1.2 trillion, or 25%, was wiped since its December record high.

Buoyed by Donald Trump’s promises to relax crypto laws, many who piled into digital assets this year were newbies.

For instance, Google searches for “how to trade crypto” spiked worldwide at the start of 2025, most traders buying the president’s memecoin were first-time Solana users, and more Americans now own crypto than in 2024.

Top three cryptos Bitcoin, Ethereum, and XRP are down 19%, 23% and 25% over the same period. 

Despite the brutal beating inflicted upon the industry, people remain bullish.

Yes, Galaxy Research’s top dog says Bitcoin will likely fall down to $74,000. Yes, the market has lost $1 trillion in market value since its December high.

But, analysts seem to take it as fait accompli that the industry will bounce back. Traders have poured into bets that Bitcoin will reach $120,000 by the end of March. 

Bernstein and Standard Chartered both see a $200,000 price on the horizon. 

The argument they make is simply that none of the fundamentals have gone away. 

Trump is still in the White House, lawmakers keep pushing crypto bills through the guts of Capitol Hill, altcoin ETFs look increasingly possible to be greenlit, fintechs keep creeping into the industry, and institutions remain excited about digital assets. 

Bitwise’s Matt Hougan even suggested that the crash will be good for the industry by ending the “memecoin carnival” once and for all.

That’s something many industry reps have wished for after the catastrophic launch and crash of several high-profile shitcoins over the past few months.

The industry seems to have taken Monty Python’s advice to “Always look on the bright side of life” to heart.

But should one remind them that the comedy troupe sang it during a crucifixion scene?

Robinhood may come out as one of the big winners from this week’s chaos. Morgan Stanley expects investors to see the fintech as a safe haven of sorts, or at least safer than some of its crypto rivals.

The Tron founder appears poised to settle a long-running SEC case, Liam Kelly reports. Justin Sun invested $75 million in World Liberty Financial. The development is the latest SEC crypto case retreat.

Three bills aimed to introduce state-run Bitcoin reserves have failed since Donald Trump took office, despite the president’s promises to relax crypto laws.

Post of the Week

Bitwise founder Arthur Hayes delivers on the gallows humour after the crypto market bloodbath.

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