Bitcoin Below $90,000: Panic In The Crypto Market

Bitcoin has fallen below the $90,000 mark, putting a brake on its ascent towards a new ATH. This brutal correction can be explained by a combination of factors: massive liquidations, disengagements from Bitcoin ETFs, and a tense economic climate between the United States and China. Why such a jolt in the crypto market? An analysis of a pullback that recalls certain dark episodes from the past.

ETFs Sell Off en Masse: The Price of Bitcoin in Free Fall

Bitcoin hit a low of $87,629 on February 25, its lowest level since November 2024. The main reason? A real collapse of American Bitcoin ETFs. In six consecutive days of selling, these funds recorded over $516 million in outflows in a single day, bringing the total withdrawals to $1.14 billion in two weeks.

Is such a disenchantment from investors a sign of Bitcoin’s fatigue?

The answer may lie in the trade tensions between Washington and Beijing. Donald Trump announced the possible visit of Xi Jinping, raising the prospect of a new trade agreement. In the meantime, the crypto market is under pressure from macroeconomic uncertainties.

Moreover, high interest rates and a decrease in global purchasing power are weakening incoming capital into Bitcoin. As Iliya Kalchev, an analyst at Nexo, points out:

” The global economic factors exert considerable influence on the crypto market, making Bitcoin vulnerable to external pressures. “

So, is this just a market breather or the prelude to a deeper correction?

Record Liquidations: The Crypto Market Wobbles

If Bitcoin coughs, the entire crypto sphere catches a cold. In just 24 hours, $1.3 billion in liquidations wiped out 362,000 traders. Bitcoin was the hardest hit, with $523 million liquidated. A figure that resonates with another significant event: the historic hack of Bybit, which cost the platform $1.4 billion.

Massive liquidations have a snowball effect: over-leveraged traders are forced to sell their positions, amplifying the decline of BTC and altcoins.

Moreover, this pattern eerily resembles that of 2017, as noted by Raoul Pal:

” In 2017, we experienced five corrections of over 28%, lasting two to three months each, before reaching new highs. “

Some numbers to better grasp the scale of the phenomenon:

• $1.3 billion in liquidations in 24h;
• $523 million for Bitcoin alone;
• 362,000 traders affected.

Could the trend worsen? Arthur Hayes warns that some hedge funds will continue to sell their ETF shares to buy futures contracts on Bitcoin. A BTC at $70,000 in the near future?

Yes, it’s not just Bitcoin that is suffering; it’s the entire crypto market that is in crisis. A sentiment of panic and distrust recalls the dark hours following the collapse of FTX and Bybit. Is the worst crypto winter in history looming again?