Bitcoin's recent dip below the $90,000 mark has sent ripples through the cryptocurrency market, leading to significant liquidations and heightened investor anxiety.

Bitcoin’s Descent Below $90,000

On February 25, Bitcoin’s price fell to $87,169, marking its lowest point since November 18. This decline is attributed to growing concerns over U.S. trade tariffs and a recent $1.5 billion hack on the Bybit exchange, which have collectively shaken investor confidence.

Massive Liquidations Across the Crypto Market

The sudden downturn triggered extensive liquidations in the cryptocurrency market. Within a 24-hour period, liquidations totaled approximately $150 million, with long positions accounting for 78% of this amount.

tokenpost.com This wave of liquidations underscores the market’s volatility and the potential risks of leveraged trading.

Market Sentiment and Future Outlook

The recent events have led to a shift in market sentiment, with the Crypto Fear & Greed Index dropping to a three-month low. Analysts are closely monitoring key support levels, particularly around the $70,000 mark, as potential indicators of Bitcoin’s future trajectory.

marketwatch.com Despite the current downturn, some experts view this correction as a natural part of Bitcoin’s market cycle and remain optimistic about its long-term prospects.

In conclusion, Bitcoin’s dip below $90,000 has had significant repercussions across the cryptocurrency market, leading to substantial liquidations and a shift in investor sentiment. As the market continues to navigate these challenges, investors are advised to exercise caution and stay informed about ongoing developments.