Bitcoin’s price has dropped below the important $90,000 level, which has caused many people to sell their crypto. As of February 26, data shows that almost 230,000 buyers have closed their accounts in the last 24 hours, and open interest has dropped by 5%. This is a strong sign that a lot of people are reducing their debt. Also, exchange inflows have increased by 14.2%, meaning buyers are selling in a panic as the economy gets worse. While crypto-related stocks like Coinbase (COIN) and Robinhood (HOOD) have dropped, Bitcoin miners like Bitdeer (BTDR) and Marathon Digital (MARA) have dropped 29% and 9%, respectively. Since funding rates have gone negatively, buyers are preparing for more market volatility.
Heavy Bitcoin ETF Outflows Boost Sell-Off
Strong outflows from U.S. spot Bitcoin ETFs have made the price drop even more. Total outflows have hit $1.1 billion in just the last five days, with $516 million leaving on 24th February. These huge withdrawals show that big investors are pulling back, which is making Bitcoin’s price drop quickly.
Recent data shows that 12% of all Bitcoin addresses are at a loss. This is the highest number of unrealized losses since October 2024. Many of these buyers bought Bitcoin near its all-time high of $108,000 and are now losing a lot of money, making it more likely that prices will drop even more.
Economy and Whale Activity Drive Downtrend
More worries about the economy have caused the latest drop in Bitcoin prices. Donald Trump’s plans to tax Canada and Mexico have made the market less confident because people worry about inflation and the economy not growing. Also, rising global tensions between the US and China over semiconductor trade restrictions have made people even less willing to take risks.
Future of Bitcoin
The $88,000 support level for Bitcoin is now the focus. If the price drops below this level, it could lead to more forced sales, speeding up the drop. Traders also consider $90,000 a possible recovery level, hoping things will settle down after this sharp drop.
Conclusion
Long-term investors are cautiously optimistic, even though too much debt, ongoing economic uncertainty, and falling market trust all point to more trouble ahead. What Bitcoin does next will depend largely on how the economy changes and investors’ feelings in the coming weeks.
