Bitcoin's recent drop below the $90,000 mark has raised concerns among investors. Various factors, from mass liquidations to economic tensions between the US and China, have contributed to this sharp decline.
ETFs Sell Off en Masse
On February 25, Bitcoin fell to a low of $87,629, its lowest level since November 2024. The main reason was a massive withdrawal of funds from American Bitcoin ETFs. Over six consecutive days of selling, these funds recorded outflows of over $516 million in a single day, with total withdrawals reaching $1.14 billion in two weeks.
Record Liquidations in the Crypto Market
In just 24 hours, $1.3 billion in liquidations wiped out 362,000 traders. Bitcoin was the hardest hit, with $523 million liquidated.
Tensions Between the US and China
The situation is further complicated by economic tensions between the US and China. A potential visit by Xi Jinping adds to concerns about new trade agreements, creating additional macroeconomic uncertainties.
The question arises: is this Bitcoin drop merely a market correction or a harbinger of a deeper crisis? Analysts continue to explore possible implications for the entire crypto sphere.
