Key Points:
- Bitcoin has fallen below $90,000, reaching a low of $86,314, its weakest price since November 2024.
- Analysts warn that if BTC breaks below $85,000, it could trigger $1 billion in liquidations, pushing prices toward $81,000.
- Bitcoin ETFs have recorded six consecutive days of outflows, with $516 million withdrawn on Feb. 24 alone.
Bitcoin’s price has crashed to its lowest level in three months, falling to $87,629 on February 25 before stabilizing slightly. The drop has caused widespread panic in the market, with many traders fearing further declines.
Crypto analysts warn that Bitcoin could fall to $81,000 if the bearish trend continues. “Bitcoin is moving within a consolidation range, but if it loses support at $85,000, the next major level is $81,000,” said Ryan Lee, chief analyst at Bitget Research.
The market downturn comes amid growing ETF outflows, with investors pulling $516 million from spot Bitcoin ETFs in a single day. This marks the sixth consecutive day of negative flows, highlighting a lack of confidence among institutional investors.
$1 Billion in Liquidations at Risk Below $85,000
Another major concern is the risk of cascading liquidations in the derivatives market. If Bitcoin falls below $85,000, over $1 billion in leveraged long positions could be liquidated, accelerating the price decline.
“$85,000 is a crucial level,” said Hong Yea, CEO of GRVT exchange. “If Bitcoin breaks below this, we could see a sharp downturn, possibly to $81,000 or lower.”
Adding to the uncertainty, the recent $1.4 billion Bybit hack, the largest crypto hack in history, has further shaken market confidence. While the long-term impact of the hack remains unclear, the immediate effect has contributed to the negative sentiment.
Bitcoin Struggles Despite Saylor’s $2 Billion Investment
Michael Saylor’s Bitcoin-focused company, Strategy, recently announced a $2 billion Bitcoin purchase, bringing its total holdings to nearly 500,000 BTC. However, despite this massive investment, Bitcoin has been unable to regain bullish momentum.
Strategy has acquired 20,356 BTC for ~$1.99B at ~$97,514 per bitcoin and has achieved BTC Yield of 6.9% YTD 2025. As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per bitcoin. $MSTR https://t.co/mNWDaXRE7N
— Michael Saylor⚡️ (@saylor) February 24, 2025
“The lack of a positive price reaction suggests Bitcoin needs much stronger buying pressure to recover,” analysts noted.
Traders are now watching the $86,000 level closely, as it could determine Bitcoin’s next major move. A bounce from this level might indicate a recovery, but continued selling pressure could push BTC lower.
With ETF outflows, liquidation risks, and growing fear in the market, Bitcoin remains vulnerable to further declines in the coming days.
