Bitcoin has dropped below $91,000 and is currently at a “critical juncture,” following nearly 90 days of tight, range-bound trading, as reported by analysts from crypto exchange Bitfinex.
For approximately three months, Bitcoin (BTC) has fluctuated between $91,000 and $102,000, reflecting a stagnation in market momentum. The analysts remarked in the Bitfinex Alpha report dated Feb. 24 that Bitcoin “remains at a critical juncture after nearly 90 days of consolidation.”
According to them, “The momentum necessary for a sustained breakout has been absent, resulting in a period of contraction and consolidation across nearly all major crypto assets.”
In the past 24 hours, Bitcoin has plunged over 4.5%, reaching a low of under $91,000—its lowest price since late November, based on data from CoinGecko. The overall crypto market has also seen an 8% decline in the last day, dropping from over $3.31 trillion to about $3.09 trillion.
This downturn in the crypto market led to a wave of liquidations, totaling over $961.65 million within one day. This amount was divided between $891.52 million in long positions and $70.14 million in short positions, as indicated by CoinGlass data.
The long positions in Bitcoin experienced the most significant liquidations, with more than $277 million lost in the past day.
Bitcoin long bets dominated the liquidations in the crypto market over the past day, approaching a total close to $1 billion. Source: CoinGlass
According to Bitfinex analysts, Bitcoin is increasingly mirroring traditional market trends. They noted that a significant factor contributing to the stalled crypto market is “a similar stagnation in traditional financial markets” driven by “macro-driven uncertainty.”
The S&P 500 has declined by 2.3% over the last five trading days, while the Nasdaq Composite has seen a 4% drop during the same period. Bitfinex explained that the “suppression in the broader equity market has adversely impacted risk assets in general, including cryptocurrencies.”
Moreover, the analysts pointed out that institutional demand for Bitcoin via spot exchange-traded funds has “slowed significantly,” reporting outflows amounting to $552.5 million for every trading day of the week ending Feb. 21.
Related: Bitcoin daily transfer volume drops 76%, but $160B net capital rise is bullish — Analyst
Bitfinex also highlighted that the broader US economy is facing challenges due to declining consumer confidence and rising inflation expectations.
In a recent survey conducted by the University of Michigan on Feb. 21, consumer sentiment in the US fell by 10% from January, reaching a 15-month low, reflecting “growing concerns about inflation and economic uncertainty” that could hinder consumer spending.
Finally, Bitfinex analysts mentioned that various proposed tariffs from President Donald Trump “are contributing to inflationary pressures” and have reversed some of the progress made in disinflation over the past two years.
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