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Bitcoin’s price dipped under $90,000 for the first time since November 2024, triggering concerns about further declines. The drop comes amid continuous sell-offs in US spot Bitcoin exchange-traded funds (ETFs), with investors pulling out substantial amounts over the past week.
Bitcoin BTC $88,951 hit a low of $87,629 on February 25, marking a three-month low not seen since November 14. Cointelegraph Markets Pro data confirmed the price slump, linking it to a new wave of selling pressure in US Bitcoin ETFs.
On February 24 alone, these funds recorded over $516 million in net outflows. This marked the sixth straight day of withdrawals, as reported by Farside Investors. Since February 18, Bitcoin’s value has dropped by more than 6.2%, reflecting the impact of sustained ETF exits.
The trend extends beyond just a few days. In the two weeks leading up to February 21, Bitcoin ETFs experienced cumulative net outflows exceeding $1.14 billion. This represents the largest two-week withdrawal period since these funds started trading on January 11, 2024.
The recent downturn has raised questions about the sustainability of Bitcoin’s current rally. Iliya Kalchev, dispatch analyst at Nexo, shared his perspective with Cointelegraph, noting that broader economic conditions continue to impact Bitcoin’s price movements.
“Elevated interest rates and reduced global purchasing power have led to a noticeable decline in both open interest and spot inflows, underscoring the inherent vulnerability of Bitcoin to broader economic pressures,” Kalchev explained.
Despite positive political support for Bitcoin, macroeconomic factors, such as interest rates and global liquidity, play a significant role in shaping market trends. Analysts also suggest that US-China trade tensions could be a major factor driving ETF outflows, adding further uncertainty to Bitcoin’s short-term trajectory.