The cryptocurrency market is facing a significant downturn, with Bitcoin’s price dipping to $91,000 and overall market liquidations soaring to $914 million in the last 24 hours. The broader market has lost over $150 billion, pushing the total market capitalization below $3 trillion, as altcoins experience even steeper declines.
Bitcoin, which saw a 4% drop, is struggling under critical support levels, prompting concerns of further price corrections. As per market analyst Ali Martinez, if Bitcoin fails to hold the $93,700 support level, it could fall further to $75,600. A surge in trading volumes—up by 150% to more than $51 billion—signals intensified selling pressure, with $274 million in Bitcoin liquidations recorded, primarily from long positions.
The market faces broader challenges, with Bitcoin demand turning negative for the first time since September 2024, according to CryptoQuant’s Julio Moreno. This shift suggests that the likelihood of a price rebound is dwindling, increasing the chances of a continued market correction.
Adding to the pressure, Bitcoin ETFs have experienced significant outflows, with $516 million leaving the market on Monday alone. Major financial institutions such as Fidelity and BlackRock have led the sell-offs, further fueling bearish sentiment. Market expert Arthur Hayes warned that funds leveraging Bitcoin ETFs and shorting CME futures may act to unwind positions, amplifying market instability.
Meanwhile, altcoins, including Ethereum and Solana, are facing even steeper declines. Ethereum’s price has dropped 8%, slipping below $2,500, with liquidations hitting $195 million. Solana has seen a dramatic 22% decrease since Friday, exacerbating the sell-off.
Adding to the chaos, the Bybit exchange was hacked on February 21 in what Arkham Intelligence has described as “the largest financial heist in history.” This incident has shaken investor confidence further, though Bybit managed to recover all Ethereum within 48 hours.
Finally, Citadel Securities’ recent pivot to crypto liquidity provision was interpreted as a “sell the news” moment by the market, highlighting the caution prevailing among investors. With volatility high and uncertainty lingering, the crypto market faces a difficult road ahead.
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