This week, the price of Bitcoin has dropped precipitously, from $95,700 to less than $80,000. Large wallet holders, or whales, have profited from the price decline by selling a sizable portion of their Bitcoin holdings, casting doubt on the crypto king’s ability to rebound.
For investors already struggling from the slump, this selling pressure makes matters worse.
Bitcoin holders are cashing out
Since last week, whales and sharks—that is, wallets that own 10 or more Bitcoin—have been active in the market, dumping about 6,813 coins, or about $540 million. Given that this is the biggest decrease since last July, it is a pessimistic sign that more price drops may be forthcoming.
The potential accumulation from these major investors may indicate a possible market reversal despite the selling pressure. These whales have historically had a big impact on the market, so it’s important to pay attention to what they do since they could also start to accumulate at lower levels when the market has stabilized.
Although the general attitude remains unfavorable, it is crucial to keep in mind that this conduct could also point to a change in approach. It may be a sign of confidence in Bitcoin’s long-term prospects if these big investors start buying more of the cryptocurrency again.
When examining the larger market, notable realized losses have also coincided with Bitcoin’s recent decline. More than $2.16 billion in losses were recorded between February 25 and 27, mostly from new market participants.
About $927 million of these losses, or 42.85% of the total for the young generation, happened in a single day. In the end, the losses were the biggest one-day loss since August 2024. This significant sell-off by more recent investors is a warning indication since it may discourage more market involvement.
The hard truth that younger market players are suffering major setbacks is reflected in these losses, which may lower investor confidence generally. This tendency might have a significant impact on Bitcoin (BTC) price recovery as long as it continues. This can make the market’s pessimistic outlook even worse.
BTC price is struggling
Bitcoin has already lost the $80,313 support level and is now trading at $79,539. Bitcoin is probably going to test the next support level around $76,741 in light of the recent events. There is some possibility for a price recovery because this level has traditionally served as a significant bounce point.
However, Bitcoin may drop below $76,741 and get closer to the $71,529 support if the selling pressure persists and market confidence continues to erode. A decline to this point would greatly increase the losses and strengthen the pessimistic assessment of the coin.
Bitcoin has to regain the support of $80,313 and return to $85,000 in order to refute the bearish argument and maybe ignite a comeback. This might indicate the start of a reversal and the potential for recovery if it occurs.
SEC announces that meme coins are not securities
Memes are no longer subject to securities laws, according to new rules released by the SEC today. Enforcement will be halted by the Commission, but other authorities could take over.
This may give the rogue fraudsters more confidence, or it might be a major business opportunity. The news cycle has been dominated by recent meme coin crimes that have stolen millions of dollars and damaged the reputation of cryptocurrency.
SEC will not take enforcement actions against meme coins
One of the leading financial authorities in the US, the SEC, has been attempting to reevaluate its role in the cryptocurrency space. One of its Commissioners, Hester “Crypto Mom” Peirce, stated that the Commission could attempt to assign enforcement to other organizations, such as the CFTC, when she announced the creation of the new Crypto Task Force.
The SEC issued a statement outlining its new meme coin policy today.
“Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, they are akin to collectibles. Meme coins also typically have limited or no use or functionality… [and] do not involve the offer and sale of securities under the federal securities laws,” it said.
The SEC might not want to regulate meme coins in the future, according to Peirce’s previous remarks. The Commission has been settling ongoing legal disputes and closing down its crypto enforcement division.
Given this, it makes perfect sense to have a cool-off time for meme coin enforcement.
The SEC does not, however, want to make the meme currency market a total free-for-all. As stated in the letter, “fraudulent conduct related to the offer and sale of meme coins may be subject to enforcement action or prosecution by other federal or state agencies under other federal and state laws.”
Scammers have been cautioned not to fool around, in other words.
Yep and this warning at the end:
“Fraudulent conduct related to the offer and sale of meme coins may be subject to enforcement action or prosecution by other federal or state agencies under other federal and state laws.”
In English — just because we’re not going to go after… https://t.co/DA9nEAh34D
— Eleanor Terrett (@EleanorTerrett) February 27, 2025
Although this appears to be a clear pro-crypto development, there may be a drawback. The SEC plays a crucial role in safeguarding customers from the many frauds that have taken over the meme coin market.
Some criminal prevention may be required in light of well-known rug pulls like LIBRA and the North Korean Lazarus Group’s use of meme coins to launder Bybit monies that have been stolen.
Ultimately, it’s hard to say how the meme currency market will be affected by the SEC’s new advice. On the one hand, more items and their use will be promoted by less stringent regulations.
However, this action is likely to enable other prominent people or celebrities to introduce their own meme currencies and promote pump-and-dumps. In any case, the meme currency space is about to enter a somewhat tumultuous new era.
Dogecoin price crashes below $0.20 as SEC declares meme coins non-securities
Even though the SEC has provided regulatory clarification regarding meme currencies, the price of Dogecoin is continuing to decline below $0.20. Will the price of DOGE reach $0.10 next?
The price of Dogecoin has continued its recent downward trajectory as bearish pressure on the cryptocurrency market grows, falling below the crucial support level of $0.20. Despite US authorities stating that meme coins are collectibles and exempt from securities rules, the fall has occurred. Nevertheless, the cryptocurrency market is seeing one of its worst selloffs ever, even with the legal certainty. Is there a chance that the price of DOGE will drop below $0.10 or can it rise again?
As of this writing, DOGE is trading at $0.185, a startling 10% decline in only one day.
Dogecoin price hits 4-month low as SEC deems meme coins non-securities
After falling 26% in only seven days, the price of Dogecoin is currently trading at its lowest point in almost four months. Even though the US Securities and Exchange Commission (SEC) ruled that meme coins are not securities, the downward trend is still ongoing.
The SEC claims that trading meme coins does entail the offering and selling of securities in accordance with federal securities laws. However, securities regulations do not protect buyers of meme coins.
The likelihood of a Dogecoin ETF being approved has improved as a result of this announcement. The likelihood that a DOGE ETF would be approved by the end of July 31 has increased to all-time highs, according to Polymarket. An approval may cause the price of DOGE to rise to $1.
These elements alone, however, are insufficient for an optimistic Dogecoin price forecast. Rather, DOGE holders are still losing money.
DOGE holders face massive losses as MVRV dips
The 30-day Market Value to Realized Value (MVRV) ratio indicates that many DOGE holders are now losing money as a result of the Dogecoin (DOGE) price decrease. Given this ratio’s extreme negativity, Dogecoin traders may be facing 20% in unrealized losses.
A notable decline in the MVRV ratio frequently signals a potential purchasing opportunity prior to a Dogecoin price recovery. If these losses persist, though, it may short-term depress market sentiment for the meme currency, resulting in further losses.
The DOGE price will continue to encounter challenges unless more traders purchase the drop and demonstrate faith in a comeback.
Can Dogecoin price drop to $0.10?
There is a chance that Dogecoin’s price may continue to decline, which might drive the joke coin down below $0.10. The bearish trend on the daily chart is being caused by a savage sell-off, as seen by the RSI dropping to record lows of 23.
The collapse of Silicon Valley Bank and Signature Banks in March 2023, which caused panic in the cryptocurrency industry, was the last time the DOGE RSI was this oversold.
The probability of a DOGE price rebound is reduced because the crypto market is still in a fear-based state despite this oversold RSI. The price of Dogecoin will probably fall to $0.12 in the near future as selling pressure increases. It may drop to $0.0085 if Dogecoin loses its support level.
Is a recovery ahead?
The price of Dogecoin is still under negative pressure, which reduces the likelihood of a short-term rebound. Panic selling has increased as a result of the general market fall, which will hasten the drop in altcoin prices like DOGE.
As a result, it is unlikely that the price of DOGE will rebound very soon until the general market attitude changes to one of optimism and purchasing pressure takes the place of selling.
