Bitcoin just tumbled below $88,000, hitting its lowest level since mid-November. The sell-off isn’t random—U.S. Bitcoin ETFs have seen six straight days of outflows, with $516 million pulled on Feb. 24 alone, according to Farside Investors. Over the past two weeks, ETF outflows have totaled $1.14 billion, the highest two-week withdrawal period since spot Bitcoin ETFs launched.
Trade Tensions and Global Markets Add to Selling Pressure
Bitcoin’s fall isn’t just about ETFs. CoinDesk reported that global market conditions have turned risk-averse, with Nasdaq futures dipping 0.3% and the Japanese yen strengthening as investors brace for a possible Bank of Japan rate hike. In the past, a surging yen has triggered Bitcoin crashes, including a $15,000 drop in July 2024.
Crypto Liquidations Surge Past $1.3 Billion
The crypto market’s decline has triggered $1.3 billion in liquidations over the past 24 hours, with Bitcoin alone accounting for $523 million, according to CoinGlass. The mass unwinding has affected over 362,000 traders, amplifying the sell-off.
Despite the panic, some analysts see this as a normal correction. Raoul Pal, CEO of Global Macro Investor, pointed out that Bitcoin saw five corrections of 28% during its 2017 bull run, each lasting two to three months. Whether this is just a bump in the road or the start of something bigger remains to be seen.
At the time of writing, Bitcoin is sitting at $87,807.77.
