Analysts point out that Bitcoin's price may continue to decline, potentially reaching $81,000 amid ongoing ETF outflows and market uncertainty.
Market Trends and Current Bitcoin Value
Bitcoin fell to a three-month low of $87,629 on February 25, losing the $90,000 psychological support level for the first time since January 13. According to Ryan Lee, chief analyst at Bitget Research, the main reason for the current sell-off is a loss of risk appetite among crypto investors.
Risk of Long Liquidations at $85,000 Support Level
Bitcoin's downside may hedge on the key $85,000 support, as a correction below would trigger over $1 billion worth of leveraged long liquidations across all exchanges, according to CoinGlass data.
Impact of ETFs and Economic Factors on Bitcoin
Bitcoin's decline followed another wave of selling in US spot Bitcoin ETFs, which recorded more than $516 million in net outflows on February 24 alone. These outflows have continued for six consecutive days, negatively impacting the cryptocurrency's price.
Amid waning risk appetite and economic uncertainties, the cryptocurrency market remains under pressure. The $85,000 support could be a critical level for Bitcoin in the near future.
