Bitcoin has fallen below the $90,000 threshold for the first time since November 2024, sparking concerns among analysts about the potential for further declines as US spot Bitcoin exchange-traded funds (ETFs) continue to face significant sell-offs.

According to TradingView data, Bitcoin dropped to $87,629 on Feb. 25, marking a more than three-month low, last seen on Nov. 14.

The downturn followed another round of selling pressure in US Bitcoin ETFs, which recorded over $516 million in net outflows on Feb. 24 alone.

Data from Farside Investors indicates that these ETFs have now faced six consecutive days of outflows.

Since the ETFs began their latest wave of sell-offs on Feb. 18, Bitcoin’s price has declined by more than 6.2%.

In the two weeks leading up to Feb. 21, Bitcoin ETFs saw cumulative net outflows exceeding $1.14 billion, the highest two-week withdrawal period since they began trading on Jan. 11, 2024.

One possible driver behind the sustained ETF sell-off is the ongoing trade tensions between the US and China.

US President Donald Trump mentioned that he expects Chinese President Xi Jinping to visit the US, adding that “it’s possible” for the two nations to negotiate a new trade deal, though he provided no timeline for the potential visit, Reuters reported on Feb. 20.

In addition to geopolitical factors, internal events within the crypto industry have also impacted investor sentiment.

The market was shaken by the largest hack in crypto history on Feb. 21, when Bybit suffered a loss exceeding $1.4 billion.

The resulting market turbulence has led to $1.3 billion in total crypto liquidations over the past 24 hours, affecting approximately 362,000 traders, according to CoinGlass.

Bitcoin alone accounted for $523 million of these liquidations.

While Bitcoin’s decline has raised concerns among some investors, similar corrections have historically been a natural part of the crypto market cycle.

Raoul Pal, founder and CEO of Global Macro Investor, noted in a Feb. 25 X post that the current correction mirrors the market structure seen in 2017, when Bitcoin underwent five separate 28% pullbacks, each lasting between two and three months.

Sources:

https://cointelegraph.com/news/bitcoin-drops-below-90k-etf-sell-off-liquidations-mount

https://farside.co.uk/btc/

https://www.reuters.com/world/trump-expects-visit-chinese-president-xi-without-giving-timeline-2025-02-20/

https://www.coinglass.com/LiquidationData