Key Notes
- Following Trump’s inauguration, trade uncertainties have caused cash inflows into Bitcoin-related products to plummet from $52 billion to $26.5 billion in just ten days.
- Recent hacks affecting major exchanges like Bybit have undermined institutional investor confidence, even amidst favorable regulatory conditions in the United States.
- El Salvador acquired 8 BTC valued at $750k, increasing their total Bitcoin holdings to 6,088 BTC ($564M), with President Bukele remaining steadfast in his belief in Bitcoin’s long-term significance.
After failing to maintain a bullish breakout above $98k last week, Bitcoin
BTC
$91,934
24h volatility:
4.6%
Market cap:
$1.82 T
Vol. 24h:
$50.86 B
slipped below a key support level of $95.5k on Monday, nearing the lower boundary of a potential horizontal range around $92k. Bitcoin’s price has declined by over 3 percent in the last 24 hours, trading at approximately $92.7k as of this writing.
Consequently, the broader altcoin market mirrored this bearish sentiment, led by Ethereum
ETH
$1,600
24h volatility:
5.7%
Market cap:
$200.50 B
Vol. 24h:
$15.20 B
and Ripple Labs’
XRP
$2.33
24h volatility:
9.7%
Market cap:
$134.10 B
Vol. 24h:
$7.98 B
. As per the latest market data, the total cryptocurrency market cap has dropped over 6 percent, now resting around $3.1 trillion, triggering forced liquidations exceeding $730 million.
Meanwhile, cryptocurrency analyst Ali Martinez believes Bitcoin must maintain its position above the $92k support level to prevent a significant selloff towards $75k in the upcoming weeks.
Top Reasons Why Bitcoin Price Dropped Today
Bitcoin’s price has experienced bearish sentiment since President Trump’s inauguration last month. The ongoing trade tensions have led to uncertainties in the global market, negatively affecting cash inflows toward Bitcoin and related products, especially US spot BTC ETFs.
Recent data from Glassnode reveals that net capital inflows into the crypto market have plummeted from $52 billion to about $26.5 billion in the past 10 days. Coinspeaker indicated that US spot BTC ETFs have seen a second consecutive weekly cash outflow of approximately $559 million, further dampening bullish market sentiment.
Moreover, recent hacking incidents at leading exchanges, particularly Bybit, have shaken institutional investor confidence in the Web3 ecosystem. Despite a generally favorable regulatory environment in the US, concerns over sophisticated cyber threats in Web3 protocols have led to decreased trust in blockchain security.
El Salvador Leads in Buying Dip
After a brief hiatus from daily Bitcoin purchases, El Salvador made a significant acquisition of 8 BTC, valued at around $750k, late on Monday. This means El Salvador now holds about 6,088 BTC, worth approximately $564 million at this time.
President Nayib Bukele is undeterred by short-term price volatility and continues to advocate for Bitcoin’s long-term potential, joining firms such as Strategy (NASDAQ: MSTR) in Bitcoin investments, regardless of current bearish sentiments.
As previously reported by Coinspeaker, Strategy has acquired 20,356 BTC in recent days, totaling around $2 billion from recently issued convertible senior notes.
O ye of little faith… pic.twitter.com/Rkt8itUKzw
— Nayib Bukele (@nayibbukele) February 24, 2025
El Salvador anticipates that other countries, particularly the United States, will eventually embrace Bitcoin as a strategic asset reserve. Additionally, numerous nations are grappling with high debt-to-GDP ratios, and gold has not been an adequate hedge against prevailing global inflation.
Disclaimer: Coinspeaker remains dedicated to impartial and transparent reporting. This article is intended to offer accurate and timely information but should not be construed as financial or investment advice. Given that market conditions can shift quickly, we advise you to verify information independently and seek professional guidance before making financial decisions based on this content.
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