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Bitcoin Drops Below $90K Amid ETF Sell-Off and Market Liquidations
The cryptocurrency market has been plagued by a tumultuous period of late, with the price of Bitcoin dropping below the critical $90,000 mark for the first time since November 2024. This precipitous decline is largely attributed to the relentless sell-off of exchange-traded funds (ETFs), which has reached a staggering total of over $1.14 billion in just two weeks.
As a direct result of this ETF outflow, market liquidations have skyrocketed to a whopping $1.3 billion within the span of 24 hours. Bitcoin bears the brunt of these losses, accounting for a staggering $523 million in liquidations alone, according to data from CoinGlass.
The precipitous drop has been attributed to a multitude of factors, including macroeconomic indicators and geopolitics. In his analysis, Iliya Kalchev, an analyst at Nexo, underscored the impact of high international interest rates and reduced buying power on the value of Bitcoin. He emphasized that these external influences have made the cryptocurrency increasingly susceptible to market fluctuations.
The current downturn in the crypto market is a far cry from the euphoria experienced during previous cycles. Experts point out that this phenomenon is not unprecedented, citing historical data from 2017, where similar patterns emerged during the Bitcoin cycle.
It appears that three key factors are now determining the direction of the crypto market: ETF inflows, macroeconomic signals, and investor sentiment.
Source: https://cryptonewsland.com/bitcoin-drops-below-90k-amid-etf-sell-off-and-market-liquidations/
