While investors were still dreaming of the $100K milestone, Bitcoin crashed below $89,000, hitting a 3-month low in a brutal 8.9% nosedive. The premier cryptocurrency plummeted from $99,574 to $88,600 in just 24 hours. Talk about a rollercoaster nobody signed up for.
Macroeconomic uncertainty, the Bybit exchange hack, and S&P 500 options expiration all piled on to create the perfect storm. Large whale movements likely accelerated the market’s downward spiral, triggering a chain reaction of selling pressure.
The crypto market never saw it coming—a trio of disasters converging into financial mayhem.
The bloodbath wasn’t just confined to Bitcoin. Ethereum tumbled 12.7%, and the broader crypto market shed 8% of its value. Turns out, the much-touted “decoupling” from traditional markets was just another crypto fantasy. When Nasdaq futures slip, crypto follows—like a loyal but somewhat deranged puppy.
Futures traders got absolutely wrecked. The carnage tallied $881 million in liquidations across the crypto market, with Bitcoin accounting for $272 million of that pain. Long-position holders took the brunt of it—$809.24 million wiped out compared to just $72.04 million in short liquidations. Ouch.
ETF enthusiasm? Gone with the wind. Daily purchases have dwindled from 4,000-5,000 BTC to less than 1,000, with outflows hitting $360 million on February 20. Ethereum ETFs continue to struggle like a fish on dry land.
Network activity tells an equally grim tale. New Bitcoin addresses have plummeted to 240,534—the lowest since July—and active addresses have dropped to 681.62K, numbers not seen since mid-October. The party’s cooling off, and fast.
Bitcoin now faces a critical juncture at the $90,000 level, with immediate support at $86,707. The dramatic decline returns Bitcoin to price levels last seen in November. The 23.60% Fibonacci retracement level at $94,393 stands as the next resistance hurdle if bulls decide to show up again. Despite this recent turmoil, Bitcoin still maintains a value more than quadruple compared to its 2023 lows.
After a 19% drop from its all-time high of $109,354, one thing’s clear: the cryptocurrency that was supposed to hit $150,000 by year-end is suddenly looking a lot less invincible.
