Bitcoin (BTC), the world's leading cryptocurrency, has experienced a significant downturn, dropping below $91,000 as of February 25, 2025. This decline marks its lowest level since November 2024, driven by a combination of macroeconomic uncertainties and market-specific dynamics.
In this analysis, we explore the key factors behind Bitcoin's recent slump and what investors can expect next.
Why Is Bitcoin Price Falling?
As of today, Bitcoin has declined 4.5% in the past 24 hours, mirroring a broader crypto market downturn. The total cryptocurrency market capitalization has shed 8%, sliding from $3.31 trillion** to **$3.09 trillion.
Key observations:
- Ethereum (ETH) dropped 8.5% to below $2,500.
- XRP lost 9%, trading at $2.25.
- Nearly $1 billion** in liquidations occurred, with long Bitcoin positions accounting for **$57 million.
👉 Track Bitcoin’s latest price movements here
Bitcoin Price Technical Analysis
Bitcoin is currently testing a critical support zone between $92,000 and $90,000—a level last tested in early February. Key insights:
- Strong buy orders near $90,000 could slow further declines.
- A break below this level may target the 200-day EMA near $86,000.
5 Reasons Behind Bitcoin’s Downturn
1. Trump’s Tariffs Spark Market Uncertainty
On February 24, 2025, U.S. President Donald Trump confirmed new tariffs:
- 25% on imports from Canada and Mexico.
- 10% on Chinese goods.
These policies have heightened inflation fears, reducing investor appetite for risk assets like Bitcoin.
2. Bitcoin’s Correlation with Traditional Markets
Bitcoin’s price movement increasingly mirrors equities:
- S&P 500 dropped 2.3% in the past five sessions.
- Nasdaq Composite fell 4% over the same period.
This correlation amplifies Bitcoin’s losses amid broader market weakness.
3. Declining Institutional Demand
Bitcoin ETFs saw $552.5 million in outflows for the week ending February 21, signaling waning institutional interest.
4. Arthur Hayes Predicts “Goblin Town” for Bitcoin
Former BitMEX CEO Arthur Hayes warned of a potential crash to $70,000, citing hedge fund unwinding of long ETF and short futures positions.
5. Consolidation Fatigue
Bitcoin has traded between $91,000 and $102,000 for nearly 90 days, lacking momentum for a sustained breakout.
FAQ: Key Questions Answered
What’s Next for Bitcoin Price?
- Critical support at $90,000**—if broken, a drop to **$70,000 is possible.
- Recovery depends on institutional inflows and macroeconomic stability.
Will Bitcoin Rise Again?
Analysts suggest a breakout could occur if:
- ETF inflows rebound.
- Inflation fears ease.
- Market sentiment improves.
Why Is Crypto Falling Now?
- Trump’s tariffs stoke inflation concerns.
- $1 billion in liquidations exacerbate selling pressure.
👉 Stay updated with real-time Bitcoin analysis
This downturn underscores Bitcoin’s sensitivity to macroeconomic shifts and institutional sentiment. Investors should monitor key support levels and broader market trends for signals of recovery.
### Key SEO Elements Applied:
- **Headings**: Structured with H2/H3 for readability.
- **Keyword Integration**: Bitcoin price, BTC, cryptocurrency market, Trump tariffs, Bitcoin crash.
- **Engagement**: FAQ section addresses reader queries.