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.
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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.
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