Bitcoin Drops Below $90K Amid ETF Sell-Off and Market Liquidations

• Bitcoin price fell below $90,000 for the first time since November 2024 amid ongoing ETF sell-offs.  
• US spot Bitcoin ETFs recorded over $516 million in outflows on February 24.  
• The crypto market saw $1.3 billion in liquidations, with Bitcoin alone accounting for $523 million in losses.  

Bitcoin price has dropped below $90,000 for the first time in over three months. The decline comes as US Bitcoin exchange-traded funds (ETFs) continue to face intense selling pressure. On February 25, Bitcoin price fell to $87,629, its lowest level since November 14.  

The recent drop follows sustained ETF outflows, with investors withdrawing over $516 million on February 24. Data from Farside Investors shows that Bitcoin ETFs have seen 6 consecutive days of selling. This selling pressure has contributed to a 6.2% decline in Bitcoin’s price over the past week.  

ETF Outflows Reach $1.14 Billion in Two Weeks 

Bitcoin ETFs have recorded over $1.14 billion in net outflows over the last two weeks. This marks the highest level of withdrawals since spot Bitcoin ETFs launched in January 2024. Investors appear to be exiting positions as uncertainty clouds the market .  

Analysts attribute Bitcoin’s decline to concerns over the current phase of the market cycle. Iliya Kalchev, an analyst at Nexo, talked about macroeconomic factors that have an effect on BTC/USD. He noted that high and even higher international interest rates and reduced buying power have contributed to the effect. This has made Bitcoin susceptible to different factors within the economy.  

Market Liquidations and Geopolitical Factors Weigh on Bitcoin

Beyond ETF sell-offs, geopolitical tensions have added pressure to the crypto market. US-China trade uncertainties continue to affect investor confidence. US President Donald Trump recently stated that a trade deal with China remains possible. However, no clear timeline has been set, leaving the market uncertain.  

The crypto market has also suffered from internal disruptions. On February 21, Bybit lost over $1.4 billion in the largest hack in crypto history. This incident, combined with increased market volatility, led to $1.3 billion in crypto liquidations within 24 hours. Bitcoin alone saw $523 million in liquidations, according to CoinGlass data.  

Bitcoin Correction Mirrors Previous Market Cycles

The latest price declines do not indicate an irregular pattern according to analyst predictions. Raoul Pal who leads Global Macro Investor explained that Bitcoin went through the same market fluctuations in 2017. Bitcoin experienced five drops of 28% throughout its cycle which lasted between two to three months during that period.  

Bitcoin’s current market movement shows patterns that have appeared in the past. The market maintains volatile trends in the present moment although experts track its long-term developments. Three key factors determine the direction of the crypto market including ETF inflows, macroeconomic signals, and investor sentiment.