Bitcoin Tanks Below $90K, Hitting a 3-Month Low Amid Market Sell-Off!
Bitcoin has taken a significant hit, tumbling below the crucial $90,000 level as selling pressure from equities and a lack of new catalysts weigh on the market. The flagship cryptocurrency dropped 6% to $88,333, according to Coin Metrics, briefly touching a low of $85,899—its weakest point since November. This decline marks a nearly 20% pullback from its all-time high, which was reached on the day of President Donald Trump’s inauguration.
Equities Sell-Off Spills Into Crypto
The recent downturn in Bitcoin coincides with a rough period for equity markets. The S&P 500 has recorded four consecutive losing sessions as investors worry about economic growth and global trade uncertainties. Steven Lubka, head of private clients and family offices at Swan Bitcoin, noted that this broader market weakness has spilled into the crypto space.
“Equities have faced a few difficult sessions over the last week, with top-performing stocks down significantly. This pressure has carried over into Bitcoin and the crypto markets,” Lubka said.
Beyond equity market struggles, traders are also facing a wave of liquidations. Data from CoinGlass reveals that centralized exchanges have seen approximately $697.6 million in long liquidations in the past 24 hours, forcing traders to sell at market price and exacerbating the sell-off.
A Lack of Fresh Catalysts
Bitcoin’s rally at the start of the year was driven by optimism around the new Trump administration’s potential pro-crypto policies. However, since the release of Trump’s executive order on crypto in January—seen as positive but not groundbreaking—the market has lacked strong bullish triggers.
“The market was very enthusiastic about pricing in a crypto-friendly U.S. administration,” said Joel Kruger, market strategist at LMAX Group. “Now, it’s a question of waiting for the next catalyst.”
Could Bitcoin Fall Further?
Analysts are watching the $90,000 level closely, as it has served as a key support point since November. If Bitcoin breaks below it meaningfully, a drop toward $80,000 or even the $70,000-$75,000 range is possible. Despite the short-term uncertainty, Lubka remains optimistic, expecting Bitcoin to stabilize and continue its long-term upward trajectory by mid-March.
Meanwhile, the broader crypto market is also under pressure. Market participants are now closely watching whether Bitcoin can reclaim the $90,000 level or if further downside is imminent. The next few weeks will be crucial in determining if this is a temporary dip or the start of a prolonged downturn. Ether and Solana fell 6% and 4%, respectively, while meme coins suffered a significant blow, with Libra dropping nearly 20% and the Trump meme coin slipping 8.7%.
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