Bitcoin Dives Under $90K as $1.14B ETFs Cash Out in 2 Weeks
Bitcoin fell below $90,000 for the first time since November 2024, sparking fresh concerns for investors as US spot Bitcoin exchange-traded funds (ETFs) continued to dump.
The digital asset dropped to $87,629 on Feb 25, a 3 month low according to Cointelegraph Markets Pro.
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The sell off accelerated as ETFs had $516m in outflows on Feb 24 alone. Over the last 6 days Bitcoin ETFs have lost over $1.14 billion, the biggest 2 week outflow since they launched on Jan 11, 2024. Institutional pressure is raising questions about the sustainability of Bitcoin’s rally which saw the asset peak above $95,000 earlier this year.
Geopolitical Tensions and Market Uncertainty Weigh on Crypto
Macroeconomic and geopolitical factors are also weighing on Bitcoin. US China trade tensions are spooking global markets with investors seeking safe assets in the uncertainty. Former US President Donald Trump hinted at trade talks with Chinese President Xi but provided no timeline, fueling uncertainty.
Market sentiment also took a hit after the biggest hack in crypto history. Bybit reported a $1.4b loss on Feb 21 due to a cyber attack. The breach spooked investors and added to selling pressure across all digital assets. The after math of the hack saw total crypto liquidations surpass $1.3b in 24 hours with 362,000 traders affected. Bitcoin alone had $523m in liquidations, showing how volatile the market is.
Is Bitcoin Facing a Prolonged Correction?
Despite the sell off, analysts note that Bitcoin’s price corrections are normal. Raoul Pal, founder and CEO of Global Macro Investor compared the current dip to the 2017 bull cycle where Bitcoin had 5 separate 28% pull backs, each lasting 2-3 months.
Here are the key market trends:
Institutional Selling: ETF outflows are the dominant force in Bitcoin’s price action.
Regulatory Scrutiny: Ongoing crypto regulation discussions in US and Europe are shaping investor sentiment.
Technical Support Levels: Bitcoin is at critical support at $85,000 with resistance at $90,500.Short term is unknown, long term is normal.
While short-term price swings remain unpredictable, long-term investors view the latest downturn as part of Bitcoin’s natural market cycle. As historical patterns suggest, corrections have often paved the way for stronger recoveries in the crypto market.
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