The market lost its stance below $90,000 in Bitcoin value during a series of strong ETF sales and rising market liquidations that made investors hesitantly. On February 25 Bitcoin reached its lowest level in three months at $87.629 before returning to previous production highs.
Repeated sales of Bitcoin ETF products in U.S. markets pushed Bitcoin below $90,000 on February 24 according to Farside Investors data. Over the last six days investors have continuously taken money out of Bitcoin funds which has caused the market price to fall by more than 6.2%.
Bitcoin ETF Withdrawals Hit Record
From January 11 to February 21 the Bitcoin ETF total withdrawals reached $1.14 billion during two weeks marking its biggest withdrawal track since trading started. Experts connect the ETF investor panic with increasing U.S.-China trade conflict.
On February 20 Reuters reported that Donald Trump mentioned Chinese President Xi Jinping might visit the U.S. and a new trade deal remains possible although Trump did not reveal a timeframe. The shifting trade conditions between nations contribute to worldwide market fluctuations which dampen investors’ crypto market outlook.
The market volatility increased because different forces impacted the industry from within. On February 21 Bybit experienced the biggest crypto hacking incident ever that cost investors over $1.4 billion. The loss from the cyber-theft at Bybit forced a spike in market volatility which resulted in 362,000 traders losing $1.3 billion in trades during the last 24 hours.
Bitcoin represented $523 million of total trading losses at this time. Market analysts believe BTC typically experiences temporary drops that prove normal in the cryptocurrency industry. In 2017 when BTC prices surged Raoul Pal the CEO of Global Macro Investor discovered five 28% drops which lasted either two or three months.
Despite market swings Bitcoin will mainly follow bigger economic patterns including Exchange-Traded Fund growth while investor sentiment decides the future path.
