Bitcoin has hit new lows, falling below $90,000 for the first time in months. This article explores the key factors driving this sharp decline.
ETF Outflows and Liquidations: Causes of Bitcoin's Fall
Bitcoin’s price is falling fast, hitting $87,629 on February 24—a three-month low. The primary cause is the massive outflow from Bitcoin ETFs, with $516 million withdrawn in a single day and over $1.14 billion in the last two weeks. Selling pressure is growing as liquidations spike in the crypto market. BTC alone accounted for $523 million in liquidations over the past 24 hours, according to Coinglass. Analysts warn of potential further declines.
Crypto Market Crash Led by Bitcoin
Bitcoin is leading a massive crypto market crash, wiping out leveraged positions. The total crypto market has lost over $150 billion recently. According to CryptoRank, long positions worth $809 million were liquidated in a single day, with Bitcoin accounting for the largest share. Coinglass data shows $523 million in Bitcoin was liquidated in the past 24 hours, with Ethereum losing $192 million and Solana $90 million. Liquidations across all cryptocurrencies have surpassed $1.3 billion.
Challenges for Altcoins and Solana
Altcoins are suffering more than Bitcoin. Ethereum has dropped under $2,500, losing 8% in a day. Solana is among the biggest losers, falling over 22% since last Friday. Memecoins are also crashing; Dogecoin and Shiba Inu have dropped over 10% in the last 24 hours, and Pepe has lost 15%. Trump's official memecoin, TRUMP, has plunged 75% from its peak.
Bitcoin is under pressure from ETF outflows and massive liquidations. Analysts warn of further potential losses, while US political policies add uncertainty to the market.
