Bitcoin 's value dropped below the significant $90,000 threshold for the first time since November 2024. The cryptocurrency's decline has sparked concerns among investors as it reached a three-month low of $87,629 on February 25, according to data from Cointelegraph Markets Pro.
This downturn coincides with a notable sell-off in US spot Bitcoin exchange-traded funds (ETFs), which have been experiencing sustained outflows.
US Bitcoin ETFs have been subject to a wave of selling, with over $516 million in net outflows recorded on February 24 alone. This marks six consecutive days of selling for the ETFs, starting from February 18. Over the course of these six days, Bitcoin's price has decreased by more than 6.2%.
In the two weeks leading up to February 21, the Bitcoin ETFs saw more than $1.14 billion in cumulative net outflows, the highest for any two-week period since they began trading on January 11, 2024. Analysts suggest that the continued sell-off in ETFs may be linked to the ongoing trade tensions between the US and China.
The trade relationship between the two economic giants has been in the spotlight, with US President Donald Trump indicating that he anticipates a visit from Chinese President Xi Jinping. Trump mentioned the possibility of a new trade deal between the US and China but did not provide a timeline for the visit, according to a February 20 report.
The broader cryptocurrency market has also been impacted by internal events, including a significant hack on February 21, when Bybit lost over $1.4 billion in the largest hack in crypto history. This event contributed to market volatility, leading to $1.3 billion in total crypto liquidations in the past 24 hours, affecting 362,000 traders, with Bitcoin accounting for $523 million of those liquidations, as reported by CoinGlass.
Despite the current downturn and investor concerns, historical patterns in the crypto market have shown similar corrections. Raoul Pal, founder and CEO of Global Macro (BCBA: BMAm ) Investor, compared the present market movements to the 2017 cycle, noting that Bitcoin experienced a 28% correction five times during that year, with each correction lasting approximately two to three months. Pal shared these insights in an X post dated February 25.
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