Bitcoin’s price has experienced a significant drop below the $90,000 mark, resulting in over $1 billion worth of crypto liquidations across the market. This decline has led to substantial losses for traders holding long positions, with estimated outflows totaling $873 million within 24 hours. Data from Coinglass reveals nearly 230,000 traders have been liquidated during this period. Open interest also declined by 5%, indicating a widespread deleveraging trend across exchanges. Furthermore, an increase in exchange inflows has been observed at 14.2% – suggesting increased panic selling. Funding rates have shifted to negative territory, signaling a change in investors’ sentiment and potential shift away from investment activity. This decline is further fueled by strong withdrawals from U.S. spot Bitcoin ETFs, totaling $1.1 billion with a notable loss of $516 million on February 24th alone. Crypto-related stocks also suffered losses – Coinbase (COIN) decreased 6.4%, Robinhood (HOOD) fell 8%, and Bitcoin miners Bitdeer (BTDR) and Marathon Digital (MARA) saw drops of 29% and 9% respectively. According to IntoTheBlock, 12% of all Bitcoin addresses currently hold unrealized losses – the highest percentage since October 2024. Many investors who purchased close to the historical highs of $108,000 are underwater due to this decline. A significant portion of traders have been liquidating positions due to fears of further price drops. The recent slump has also seen a surge in whale activity. In the past week, over $1.2 billion worth of Bitcoin has been offloaded by these large investors. This bearish trend is partly attributed to worsening macroeconomic conditions including the potential impact of proposed tariffs from Donald Trump on Canada and Mexico, rising concerns about inflation and economic stagnation. Geopolitical tensions between the U.S. and China, specifically concerning trade restrictions on semiconductors, have also contributed to increased market volatility. Traditional financial markets like the Nasdaq Composite and S&P 500 experienced notable declines of 2.8% and 2.1% respectively. A flight-to-safety trend is evident in the strengthening U.S. Dollar Index. The crucial support level for Bitcoin, hovering around $88,000, remains a key indicator. Continued price drops below this point may spark even more substantial liquidations. While excessive leverage, persistent economic uncertainty, and waning market confidence suggest further volatility ahead. Traders remain cautiously optimistic about the potential recovery of Bitcoin, with the $90,000 mark as a possible target.