Bitcoin plunges below the $90,000 mark, with further slump expected
This illustration photograph shows a coin imitation of the Bitcoin cryptocurrency arranged beside a screen displaying a trading chart, taken in Istanbul, Türkiye, on Nov. 22, 2024. (AFP Photo)
The cryptocurrency market has been shaken as Bitcoin struggles with a strong bearish sentiment, plummeting below the $90,000 mark.
Opening the week at $96,261, the world’s largest and most valuable cryptocurrency dropped over 10% to a low of $86,097 on Feb. 25—its lowest level since November.
This sharp decline triggered a widespread sell-off across the crypto market, wiping out nearly half a trillion dollars in total market capitalization over the past few days.
Despite a weak rebound attempt, Bitcoin is currently trading at $88,256 on Wednesday, as of 1244 GMT.
Concerns mount amid consecutive bad news
Bitcoin had surged to an all-time high of $109,228 on Jan. 20, the day of U.S. President Donald Trump’s inauguration. However, investor confidence has been shaken by the lack of concrete action on Trump’s promises regarding easing cryptocurrency regulations and establishing a strategic Bitcoin reserve.
Adding to market uncertainty are the Federal Reserve’s unclear interest rate policies and Trump’s recent announcement of additional tariffs. While markets had been expecting a Fed rate cut in June, inflationary pressures and the central bank’s cautious stance have dampened these expectations.
Moreover, the Trump administration’s newly announced tariffs on China, Mexico and Canada have intensified selling pressure. According to an analysis by QCP Capital, investors fear that trade restrictions could slow economic growth, limiting institutional demand for crypto assets.
Another factor contributing to Bitcoin’s decline was a massive security breach at the Dubai-based cryptocurrency exchange Bybit on Feb. 21. Hackers compromised an Ethereum wallet belonging to the exchange, stealing approximately $1.5 billion in digital assets—marking the largest cryptocurrency theft in history.
In response to Bitcoin’s price drop, U.S.-listed Bitcoin spot ETFs saw significant outflows, with investors pulling a net total of $938 million from 11 different Bitcoin ETFs.
Binance’s former CEO predicts $1 million Bitcoin price
British banking giant Standard Chartered has cautioned against further declines, warning that Bitcoin could fall even lower after reaching a three-month low.
“The drop in U.S. Treasury yields could support Bitcoin in the long term due to its negative correlation. However, given the ongoing ETF outflows, now may not be the right time to buy Bitcoin,” Geoff Kendrick, an analyst at the bank, stated in a recent report.
Meanwhile, cryptocurrency platform Binance’s co-founder and former CEO Changpeng Zhao (CZ), who previously predicted Bitcoin’s drop to $85,000, has now claimed that the cryptocurrency could eventually reach $1 million. However, he also warned of potential pullbacks, suggesting that Bitcoin could retract to $985,000 after hitting this milestone.
Analysts considered the $86,000 level a crucial support zone, highlighting a break below this threshold could trigger even steeper declines.
