Bitcoin Price Plunges to 120-Day Lows: Can Michael Saylor’s $2B Move Rescue US Markets?

Bitcoin price tumbled to $86,050, its lowest since November, as inflation fears and Trump’s tariffs overshadowed Michael Saylor’s latest $2B purchase.

Bitcoin (BTC) Plunges to Lowest Since November Despite Michael Saylor’s Latest Purchase

Bitcoin price collapsed to its lowest level in four months, crashing to $86,050 as traders reacted to inflation concerns and Trump’s latest tariffs decision.

Following a hotter-than-expected CPI report that ignited downward pressure on February 13, Bitcoin extended losses as President Donald Trump announced new tariffs on Mexican and Canadian imports, set to take effect on March 1.

The policy shift added fresh economic uncertainty, forcing investors to hedge against potential inflationary pressures. In reaction, BTC price fell another 3% on Tuesday, marking its lowest price since November 2024. Binance order books reveal significant sell-side pressure, as traders rushed to liquidate positions amid fears of prolonged macroeconomic instability.

Michael Saylor’s Double BTC Price Catalysts to Lift Market

Michael Saylor made two aggressive moves to reinforce Bitcoin’s long-term value, but the market remained unfazed amid Trump’s economic policy shift.

On Monday, Saylor’s firm, Strategy (formerly MicroStrategy), added 20,356 BTC to its treasury, spending nearly $2 billion at an average price of $97,514 per coin.

This latest purchase elevated Strategy’s Bitcoin holdings to 499,096 BTC, acquired at an average of $66,357 per coin, totaling $33.1 billion in investments. Despite the massive buy, Bitcoin failed to gain traction, weighed down by investor fears over inflationary fallout from new tariffs.

Beyond the acquisition, Saylor made a second bold move, presenting a Bitcoin Strategic Reserve Plan to the US Securities and Exchange Commission (SEC) on Friday, February 21, according to FOX News analyst Eleanor Terrett.

The proposal suggests integrating Bitcoin into the national financial system, potentially generating between $16 trillion and $81 trillion in wealth for the US Treasury.

Saylor argues that Bitcoin could serve as a hedge against sovereign debt, addressing America’s mounting liabilities, which stood at $36.2 trillion as of February 5, 2025.

However, despite the far-reaching potential positive impacts, Crypto marketsBitcoin price slumped to $86,050, its lowest since November, as inflation fears and Trump’s tariffs overshadowed Saylor’s $2B BTC buy. shrugged off the proposal, focusing instead on immediate economic threats.

BTC Tracks Global Market Decline as Inflation Panic Overshadows Saylor’s Moves

Despite Saylor’s aggressive accumulation and strategic policy push, Bitcoin fell in tandem with broader financial markets. The S&P 500 registered a sharp decline on Tuesday, tracking the same risk-off sentiment that pressured BTC. Commodity markets also faced significant volatility, reinforcing investor uncertainty amid a changing economic landscape.

While Saylor’s long-term strategy underscores institutional confidence in Bitcoin, short-term traders remain fixated on macroeconomic headwinds. Strategy’s continuous accumulation could eventually bolster retail sentiment, but for now, BTC remains vulnerable to policy-driven volatility.

Bitcoin Price Forecast: $85,000 Support Remains at Risk

Expectations of further inflation could prompt investors to withdraw more capital from Bitcoin and other risk assets as the March 1 tariff implementation nears, now less than a week away. This creates a significant downside risk. Technical indicators reinforce this bearish outlook.

Bitcoin price forecast charts show how bears extended the downturn by 3.61% on Tuesday, briefly touching an intraday low of $86,050 on Binance.

The decline has pushed BTC below its 100-day simple moving average (SMA), currently at $98,014, a level that had provided support for much of the past three months.

The 200-day SMA at $81,627 is now the key downside target, with any further weakness likely to accelerate selling pressure toward this level.

The MACD histogram signals intensifying bearish momentum, as the indicator plunges further into negative territory. The MACD line (-621.44) has crossed decisively below the signal line (-1,072.98), confirming a sustained downtrend. A failure to reclaim the 100-day SMA could see BTC test the psychologically significant $85,000 level in the coming days.

On the bullish side, Bitcoin remains structurally above the 200-day SMA, a critical long-term trend indicator. Should BTC hold above $85,000 and buyers step in, a rebound toward $90,000 could unfold, with further resistance at $98,000. However, unless sentiment shifts, Bitcoin risks further downside as macroeconomic concerns overshadow positive institutional activity.