Long

Chair

Bitcoin

Reserve

<ul> 
 <li data-start="181" data-end="259">Bitcoin fell 6% in the past 24 hours to $89,617, hitting a low of $88,355.</li> 
 <li data-start="260" data-end="386">Crypto markets are reacting to broader financial uncertainty, including Trump’s tariff plans and equity market volatility.</li> 
 <li data-start="387" data-end="485">Bitcoin ETFs have seen $1.6 billion in net outflows since February 7, adding selling pressure.</li> 
</ul> 
<p>Below are the key factors behind why <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin</a> is down today.</p> 
<p>&nbsp;</p> 
<h2 data-start="655" data-end="708" id="bitcoin-falls-below-90k-amid-market-turmoil">Bitcoin Falls Below $90K Amid Market Turmoil</h2> 
<p data-start="709" data-end="1083"><a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin (BTC)</a> has fallen 7% in the past 24 hours, reaching a low of $88,355 before recovering slightly to $89,617. The price decline comes at a time when the broader cryptocurrency market is also struggling. Ethereum (ETH) dropped by 10.45% to $2,410, while Solana (SOL) fell 12.6% to $138.6. The GMCI 30 Index, which tracks the top 30 cryptocurrencies, declined by 8.96%.</p> 
<p data-start="1085" data-end="1240">Several key factors have contributed to Bitcoin’s recent downturn, including macroeconomic uncertainty, increased ETF outflows, and high market leverage.</p> 
<p data-start="1085" data-end="1240"><img loading="lazy" decoding="async" class="size-full wp-image-59946 alignnone" src="https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15.png" alt="BTCUSDT 2025 02 25 13 56 15" width="1534" height="849" title="Why is Bitcoin Down Today? 26" srcset="https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15.png 1534w, https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15-300x166.png 300w, https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15-1024x567.png 1024w, https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15-768x425.png 768w, https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15-750x415.png 750w, https://crypto.ro/en/wp-content/uploads/2025/02/BTCUSDT_2025-02-25_13-56-15-1140x631.png 1140w" sizes="(max-width: 1534px) 100vw, 1534px"></p> 
<h2 data-start="1247" data-end="1309" id="macroeconomic-uncertainty-triggers-risk-off-sentiment">Macroeconomic Uncertainty Triggers Risk-Off Sentiment</h2> 
<p data-start="1310" data-end="1423">One of the primary reasons for Bitcoin’s decline is the increased uncertainty in traditional financial markets.</p> 
<ol data-start="1425" data-end="2233"> 
 <li data-start="1425" data-end="1713"><strong data-start="1428" data-end="1452">Trump’s Tariff Plans</strong> – U.S. President Donald Trump recently announced that new tariffs will be imposed on Canada and Mexico once the current 30-day suspension expires. This has led to concerns about trade disruptions and has impacted investor confidence across financial markets.</li> 
 <li data-start="1714" data-end="1976"><strong data-start="1717" data-end="1741">Stock Market Decline</strong> – U.S. equities have also struggled over the past week, with top-performing stocks facing increased selling pressure. Bitcoin often correlates with broader financial markets, and this negative sentiment has spilled over into crypto.</li> 
 <li data-start="1977" data-end="2233"><strong data-start="1980" data-end="2010">Fear and Greed Index Drops</strong> – The Crypto Fear and Greed Index, which measures investor sentiment based on volatility, volume, and social media trends, has dropped to 25, its lowest level in five months. This indicates growing caution among traders.</li> 
</ol> 
<h2 data-start="2240" data-end="2289" id="bitcoin-etf-outflows-exceed-1-6-billion">Bitcoin ETF Outflows Exceed $1.6 Billion</h2> 
<p data-start="2290" data-end="2442">Bitcoin exchange-traded funds (ETFs), which have played a major role in BTC’s price movements, have seen significant outflows over the past two weeks.</p> 
<ol data-start="2444" data-end="3120"> 
 <li data-start="2444" data-end="2618"><strong data-start="2447" data-end="2492">$1.6 Billion in Outflows Since February 7</strong> – Data shows that Bitcoin ETFs have collectively lost $1.6 billion in net outflows since hitting a peak earlier this month.</li> 
 <li data-start="2619" data-end="2910"><strong data-start="2622" data-end="2655">Spot ETF Buyers Are at a Loss</strong> – Analysts point out that the average purchase price for Bitcoin ETFs since the U.S. election stands at $96,500. With Bitcoin now trading below $90,000, many institutional buyers are holding losing positions, which could be prompting further sell-offs.</li> 
 <li data-start="2911" data-end="3120"><strong data-start="2914" data-end="2951">Weak Demand in Recent ETF Inflows</strong> – While Bitcoin ETFs initially fueled BTC’s rally to an all-time high in January, recent data suggests that new inflows have slowed, reducing overall buying pressure.</li> 
</ol> 
<p><img decoding="async" src="https://pbs.twimg.com/media/GkoLU9-WkAEQD7B?format=jpg&amp;name=medium" alt="Image" title="Why is Bitcoin Down Today? 27"></p> 
<h2 data-start="3127" data-end="3178" id="increased-market-leverage-and-liquidations">Increased Market Leverage and Liquidations</h2> 
<p data-start="3179" data-end="3269"><a href="https://www.coinglass.com/LiquidationData" rel="nofollow noopener" target="_blank">High leverage</a> in the crypto derivatives market has added to Bitcoin’s recent volatility.</p> 
<ol data-start="3271" data-end="3878"> 
 <li data-start="3271" data-end="3458"><strong data-start="3274" data-end="3309">Binance Futures Positions Surge</strong> – On Monday, Binance saw a $1 billion increase in open futures positions, with traders taking short positions in anticipation of further declines.</li> 
 <li data-start="3459" data-end="3716"><strong data-start="3462" data-end="3509">Long/Short Ratio on Kraken Hits Record High</strong> – While some traders are buying the dip, Kraken reports that its long/short ratio has reached 0.8, the highest ever recorded. This suggests that traders are expecting a rebound, but leverage remains high.</li> 
 <li data-start="3717" data-end="3878"><strong data-start="3720" data-end="3752">Potential for a Long Squeeze</strong> – If Bitcoin continues to decline, leveraged long positions could face liquidations, leading to even more selling pressure.</li> 
</ol> 
<p><img decoding="async" class="alignnone" src="https://s3.cointelegraph.com/uploads/2025-02/01953c6e-3f8e-75c3-b0aa-2b53eccbe33a" alt="Cryptocurrencies, Federal Reserve, Central Bank, Bitcoin Price, Bitcoin Regulation, Markets, Cryptocurrency Exchange, Interest Rate, BTC Markets" title="Why is Bitcoin Down Today? 28"></p> 
<h2 data-start="3885" data-end="3918" id="what-s-next-for-bitcoin">What’s Next for Bitcoin?</h2> 
<p data-start="3919" data-end="4128">Bitcoin’s price is now nearly 20% below its all-time high of $109,356, which was reached in January. Analysts suggest that if BTC fails to hold above the $90,000 support level, it could see further declines.</p> 
<h3 data-start="4130" data-end="4160" id="strong-data-start-4134-data-end-4158-key-levels-to-watch-strong"><strong data-start="4134" data-end="4158">Key Levels to Watch:</strong></h3> 
<ul data-start="4161" data-end="4481"> 
 <li data-start="4161" data-end="4274"><strong data-start="4163" data-end="4185">Support at $88,000</strong> – If Bitcoin falls below this level, it could drop further to $85,000 or even $80,000.</li> 
 <li data-start="4275" data-end="4375"><strong data-start="4277" data-end="4302">Resistance at $92,000</strong> – A recovery above this level could indicate renewed bullish momentum.</li> 
 <li data-start="4376" data-end="4481"><strong data-start="4378" data-end="4393">ETF Inflows</strong> – If Bitcoin ETFs see renewed buying activity, this could help stabilize BTC’s price.</li> 
</ul> 
<p data-start="4483" data-end="4651">While Bitcoin’s long-term fundamentals remain strong, short-term volatility is likely to continue as investors navigate macroeconomic uncertainty and market leverage.</p>

Why is Bitcoin Down Today?

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