Bitcoin tumbles under $90K amid ETF sell-off, mounting liquidations
Bitcoin fell below $90,000 for the first time since November 2024, hitting $87,629 on Feb. 25. The drop comes amid continued sell-offs in U.S. spot Bitcoin ETFs, which saw $516 million in outflows on Feb. 24 alone. ETFs have now experienced six straight days of withdrawals, totaling over $1.14 billion in the two weeks leading up to Feb. 21, marking the largest outflows since trading began in January.
Analysts suggest the ETF sell-off is linked to escalating U.S.-China trade tensions. While President Donald Trump hinted at a possible trade deal with China, no timeline has been given, adding to market uncertainty.
Beyond geopolitical concerns, crypto markets have been shaken by the record-breaking $1.4 billion Bybit hack on Feb. 21. This, combined with high volatility, has triggered $1.3 billion in crypto liquidations over the past 24 hours, impacting 362,000 traders. Bitcoin alone accounted for $523 million in liquidations, according to CoinGlass.
Despite the downturn, some analysts see parallels with Bitcoin’s 2017 market cycle, when multiple 28% corrections occurred over two to three months. Raoul Pal, CEO of Global Macro Investor, noted that such pullbacks are part of Bitcoin’s historical price patterns.