Why Is Bitcoin Price Down Today? BTC Falls Under $91K, Testing November 2024 Lows

Bitcoin (BTC), the world’s leading cryptocurrency, has taken a significant hit, dropping below $91,000 as of February 25, 2025. From macroeconomic uncertainties to market-specific dynamics, several factors are contributing to why Bitcoin is falling and why its price is down today. In this article, we’ll break down the latest insights and explore the reasons behind Bitcoin’s current struggles. Especially since the price has reached its lowest level in three months, and some experts suggest that it may soon drop to around $70,000.Why Is Bitcoin Price Falling?As of today, Bitcoin (BTC) has fallen over 4.5% in the past 24 hours, reaching its lowest level since late November at under $91,000, according to CoinMarketCap data. This drop mirrors a broader crypto market decline, with the total market capitalization shedding 8%, sliding from over $3.31 trillion to approximately $3.09 trillion. It's worth noting that Monday's nearly 5% decline was the steepest since January 25, when BTC dropped 5.2%, losing over $5,000 in a single day.Other cryptocurrencies also saw significant losses. Ethereum (ETH) dropped 8.5% to below $2,500, while XRP lost 9% of its value, trading at $2.25. In my previous post, I also reported the stronger slum of Dogecoin's (DOGE) price to November 2024 lows. The cascading effect has triggered nearly $1 billion in liquidations, with long Bitcoin bets accounting for over $57 million of that total, per CoinGlass.Bitcoin Price Technical AnalysisBased on my technical analysis, Bitcoin is currently testing the lower boundary of a three-month consolidation range, which lies between $92,000 and $90,000. The last interaction with this level in early February did not lead to a significant upward correction, and the upper boundary of the range was last tested in mid-January.However, there is a strong accumulation of buy orders at the current level, which, in my view, could make it difficult for buyers to push through. If this level is breached, my next target would be the 200 EMA, located just below $86,000.Why is Bitcoin falling now? Let’s dive into the key reasons behind this downward spiral.5 Reasons Bitcoin Is CrashingTrump’s Tariffs Spark Crypto Market UncertaintyOne of the most immediate catalysts for Bitcoin’s price drop today is the announcement from U.S. President Donald Trump regarding new tariffs. On February 24, 2025, Trump confirmed during a news conference with French President Emmanuel Macron that his administration’s planned 25% tariffs on imports from Canada and Mexico are moving forward as scheduled. Additionally, a 10% tariff on Chinese goods has added fuel to the fire.Correlation with Traditional Markets IntensifiesBitcoin’s price movement is increasingly mirroring traditional financial markets, a trend highlighted by Bitfinex in their February 24 Alpha report. The S&P 500 has dropped 2.3% over the past five trading days, while the Nasdaq Composite has fallen 4% in the same period. This suppression in broader equity markets is dragging down risk assets, including cryptocurrencies."Technology sentiment deteriorated further following reports that the Trump administration is seeking to tighten Biden-era controls on chip technology exports to China, particularly targeting Nvidia chips and maintenance of semiconductor equipment. This comes after Trump ordered increased scrutiny of Chinese investments in key U.S. sectors, further straining U.S.-China relations," commnented XTB.Institutional Demand WanesAnother critical factor in Bitcoin’s fall is the significant slowdown in institutional demand via spot exchange-traded funds (ETFs). Bitfinex reported outflows totaling $552.5 million from Bitcoin ETFs for the week ending February 21, marking a consistent trend of withdrawals. This pullback suggests that large investors are either taking profits or reallocating capital amid the uncertain market environment."Bitcoin has broken the critical $95,000 level, a move that could have significant implications in the coming weeks. With several key factors at play, this is not the time for complacency—market dynamics are shifting, and traders should remain vigilant," commented Markus Thielen, the CEO of 10x Research.#Bitcoin & @MicroStrategy: The New Favorite Assets for Hedge Funds@BlackRock IBIT, MicroStrategy - what we know ...

Feb 25, 2025 - 08:42

Why Is Bitcoin Price Down Today? BTC Falls Under $91K, Testing November 2024 Lows

Bitcoin (BTC), the world’s leading cryptocurrency, has taken a significant hit, dropping below $91,000 as of February 25, 2025. From macroeconomic uncertainties to market-specific dynamics, several factors are contributing to why Bitcoin is falling and why its price is down today.

In this article, we’ll break down the latest insights and explore the reasons behind Bitcoin’s current struggles. Especially since the price has reached its lowest level in three months, and some experts suggest that it may soon drop to around $70,000.

Why Is Bitcoin Price Falling?

As of today, Bitcoin (BTC) has fallen over 4.5% in the past 24 hours, reaching its lowest level since late November at under $91,000, according to CoinMarketCap data. This drop mirrors a broader crypto market decline, with the total market capitalization shedding 8%, sliding from over $3.31 trillion to approximately $3.09 trillion.

It's worth noting that Monday's nearly 5% decline was the steepest since January 25, when BTC dropped 5.2%, losing over $5,000 in a single day.

Other cryptocurrencies also saw significant losses. Ethereum (ETH) dropped 8.5% to below $2,500, while XRP lost 9% of its value, trading at $2.25. In my previous post, I also reported the stronger slum of Dogecoin's (DOGE) price to November 2024 lows. The cascading effect has triggered nearly $1 billion in liquidations, with long Bitcoin bets accounting for over $57 million of that total, per CoinGlass.

Bitcoin Price Technical Analysis

Based on my technical analysis, Bitcoin is currently testing the lower boundary of a three-month consolidation range, which lies between $92,000 and $90,000. The last interaction with this level in early February did not lead to a significant upward correction, and the upper boundary of the range was last tested in mid-January.

However, there is a strong accumulation of buy orders at the current level, which, in my view, could make it difficult for buyers to push through. If this level is breached, my next target would be the 200 EMA, located just below $86,000.

Why is Bitcoin falling now? Let’s dive into the key reasons behind this downward spiral.

5 Reasons Bitcoin Is Crashing

Trump’s Tariffs Spark Crypto Market Uncertainty

One of the most immediate catalysts for Bitcoin’s price drop today is the announcement from U.S. President Donald Trump regarding new tariffs. On February 24, 2025, Trump confirmed during a news conference with French President Emmanuel Macron that his administration’s planned 25% tariffs on imports from Canada and Mexico are moving forward as scheduled. Additionally, a 10% tariff on Chinese goods has added fuel to the fire.

Correlation with Traditional Markets Intensifies

Bitcoin’s price movement is increasingly mirroring traditional financial markets, a trend highlighted by Bitfinex in their February 24 Alpha report. The S&P 500 has dropped 2.3% over the past five trading days, while the Nasdaq Composite has fallen 4% in the same period. This suppression in broader equity markets is dragging down risk assets, including cryptocurrencies.

"Technology sentiment deteriorated further following reports that the Trump administration is seeking to tighten Biden-era controls on chip technology exports to China, particularly targeting Nvidia chips and maintenance of semiconductor equipment. This comes after Trump ordered increased scrutiny of Chinese investments in key U.S. sectors, further straining U.S.-China relations," commnented XTB.

Institutional Demand Wanes

Another critical factor in Bitcoin’s fall is the significant slowdown in institutional demand via spot exchange-traded funds (ETFs). Bitfinex reported outflows totaling $552.5 million from Bitcoin ETFs for the week ending February 21, marking a consistent trend of withdrawals. This pullback suggests that large investors are either taking profits or reallocating capital amid the uncertain market environment.

"Bitcoin has broken the critical $95,000 level, a move that could have significant implications in the coming weeks. With several key factors at play, this is not the time for complacency—market dynamics are shifting, and traders should remain vigilant," commented Markus Thielen, the CEO of 10x Research.

#Bitcoin & @MicroStrategy: The New Favorite Assets for Hedge Funds@BlackRock IBIT, MicroStrategy - what we know ...