Bitcoin’s price dropped below the $90,000 mark for the first time in several months, raising concerns among analysts. This follows a wave of selling in US spot Bitcoin exchange-traded funds (ETFs), which have experienced continued outflows over the past week. The decline is attributed to both ongoing sell-offs in these ETFs and broader market volatility, including a recent large hack impacting Bybit exchange.
The drop comes after Bitcoin ETFs witnessed more than $516 million in net outflows on February 24 alone, marking six consecutive days of selling. This follows a period of high ETF withdrawals, with over $1.14 billion worth of cumulative net outflows recorded in the two weeks leading up to February 21.
The volatility also led to over $1.3 billion in crypto liquidations across various assets, affecting over 362,000 traders on February 25. Bitcoin alone accounted for $523 million of these liquidations.
Bitcoin’s recent decline has been attributed to a combination of factors including ongoing US-China trade tensions and the large hack that impacted Bybit exchange last week. The market correction is being compared to similar cycles from 2017, with some analysts suggesting this downturn is an expected part of the crypto market’s cyclical nature.