Bitcoin Price Drops Below $91K! Here Are the 5 Main Reasons!

Bittime  -Bitcoin (BTC), as the world's largest crypto asset, experienced a significant price drop, dropping below $91,000 on February 25, 2025. Several factors, ranging from global economic uncertainty to specific conditions in the crypto market, caused the price of Bitcoin to fall today. 

This article will take a deeper look at the factors that caused the Bitcoin price to drop. Moreover, the BTC price has now hit its lowest level in the last three months, and some analysts predict that the price could drop further to around $70,000.

Reasons Why Bitcoin Price Dropped Today

In the past 24 hours, the BTC USD price has fallen by more than 6.58%, hitting its lowest level since late November and is now below $89,000, according to Bittime market data.

The drop also affected the crypto market as a whole, with the market capitalization shrinking by 8%—falling from $3.31 trillion to around $3.09 trillion.

In addition to Bitcoin, several other crypto assets also experienced a decline. Ethereum (ETH) fell 8.5% to below $2,500, while XRP weakened 9% to $2.25. Even Dogecoin (DOGE) also experienced a decline to its lowest level since November 2024. 

As a result of the market crash, nearly $1 billion in liquidations occurred, with long Bitcoin positions accounting for more than $57 million of that total, according to a CoinGlass report.

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Bitcoin Technical Analysis

From a technical perspective, Bitcoin is currently testing a key support level in the $92,000 to $90,000 price range that has held for the past three months. 

In early February, Bitcoin briefly touched this level, but there was no significant upward movement. The upper limit of this range was last tested in mid-January.

Currently, there are many buy orders around this price, which can slow down further decline. However, if this level does not hold, there is a possibility that Bitcoin price will fall further, with the next target around $86,000 based on the 200 EMA indicator.

5 Main Reasons Why Bitcoin Price Drops

Below are some of the main reasons why Bitcoin prices fell today:

1. Trump's Tariff Policy Sparks Market Uncertainty

One of the main factors why Bitcoin price fell today was the import tariff policy announced by US President  Donald Trump.

On February 24, 2025, Trump confirmed that the 25% tariff on imports from Canada and Mexico would remain in place. In addition, the addition of a 10% tariff on Chinese goods further raised concerns in the market.

Also read:  Understanding What Trump Tariffs Are and Their Impact on the Crypto Market

2. Impact of Global Financial Markets

Bitcoin is increasingly showing a close relationship with the movements of traditional financial markets. 

Bitfinex Alpha's report on February 24 noted that the S&P 500 index fell 2.3% in the past five days, while the Nasdaq Composite fell by 4% in the same period.

In addition, the US government's policy of tightening technology export controls to China also affected market sentiment. 

A report from XTB said that restrictions on exports of Nvidia chips and semiconductor equipment are further exacerbating tensions between the US and China.

3. Declining Demand from Institutional Investors

Another factor weighing down Bitcoin prices is the decline in interest from large investors, especially through Bitcoin ETFs. 

Bitfinex reported that in the week ending February 21, outflows from Bitcoin ETFs reached $552.5 million. This indicates that institutional investors are starting to withdraw their funds from the crypto market.

10x Research CEO Markus Thielen stressed that Bitcoin has broken through the psychological level of $95,000, which could signal further movement in the coming weeks. He warned that market dynamics are changing, so traders need to be more vigilant.

Also read: Bitcoin ETF vs Ethereum ETF, Which is More Profitable?

4. Arthur Hayes' "Goblin Town" Prediction

Former BitMEX CEO and renowned crypto analyst Arthur Hayes has warned of a possible “goblin town” or sharp drop in Bitcoin prices in the near future. 

In his post on platform X (Twitter) on February 25, 2025, Hayes mentioned that several hedge funds that have positions in the BlackRock iShares Bitcoin Trust (IBIT) have the potential to trigger further declines.

According to Hayes, the hedge fund took a long position on IBIT and a short position on CME Bitcoin futures to earn higher returns than short-term US bond yields. 

However, when the Bitcoin price drops and the spread between the spot and futures prices narrows, they could sell their IBIT holdings and close their short positions, which could accelerate the price decline to the $70,000 level.

5. Consolidation Phase and Lack of Momentum

In the past three months, Bitcoin has mostly moved in the $91,000 to $102,000 price range without any significant movement. This condition reflects the lack of momentum to push the price up.

According to Bitfinex analysts, the market is currently in a fairly long consolidation phase, causing a lack of impetus for a strong breakout. "The momentum for a breakout is not strong enough, leading to a contraction and consolidation phase in almost all major crypto assets," they wrote in a recent report.

Uncertainty in the market, coupled with external pressures such as tariff policies and weakening investor sentiment, makes Bitcoin more vulnerable to sharp sell-offs, such as the one that occurred today.

Conclusion

Today's Bitcoin price drop was caused by a combination of factors, including Trump's tariff policy that triggered economic uncertainty, the weakening of global stock markets that further affected crypto assets, and large outflows from Bitcoin ETFs that indicated a decrease in institutional investor interest. 

In addition, the bearish sentiment reinforced by Arthur Hayes' prediction is further pressuring the market, while Bitcoin is still stuck in a consolidation phase without strong momentum to rise. With this condition, Bitcoin volatility is expected to continue in the near future. 

FAQ

1. Why did the Bitcoin price fall today?

Bitcoin prices have fallen due to a combination of factors such as global economic uncertainty, large institutional investor sell-offs, and correlation with the stock market, which has also weakened. In addition, US trade tariffs and market speculation have also exacerbated the selling pressure.

2. Will Bitcoin prices continue to fall?

There is no definitive answer, but some analysts predict that Bitcoin could still fall to $70K if the selling pressure continues. However, factors such as increased demand and market sentiment can reverse the trend over a period of time. Monitoring market movements is essential before making investment decisions.

3. Is now a good time to buy Bitcoin?

The decision to buy Bitcoin depends on each individual's investment strategy. Looking at the long-term trend, lower prices can be an opportunity for accumulation. However, high volatility requires investors to be careful and consider market analysis before buying.

How to Buy Crypto on Bittime

Want to trade and buy Bitcoin and invest in crypto easily? Bittime is ready to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures that every transaction is safe and fast. 

Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check BTC to IDR , ETH to IDR , SOL to IDR and other crypto assets rates to find out today's crypto market trends in real-time on Bittime.   

Also, visit  Bittime Blog for interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto world. 

Reference

Finance Magnates,  Why Is Bitcoin Price Down Today? BTC Falls Below $91K, Testing November 2024 Lows , accessed February 25, 2025

Cointelegraph,  Bitcoin tumbles below $90K amid ETF sell-off, mounting liquidations,  accessed February 25, 2025

Author: RC