Why Is Bitcoin Falling Today? BTC Crash Explained & What’s Next

By / / Crypto News, Daily News
Why Is Bitcoin Falling Today? BTC Crash Explained & What’s Next
Table Of Contents
  1. Why Is Bitcoin Falling Today? BTC Price Crash Explained & What’s Next
  2. Bitcoin Price Today: Market Overview
  3. Why Is Bitcoin Dropping? 6 Key Reasons
  4. Will Bitcoin Rise Again or Drop Further?
  5. Final Thoughts: Should You Buy the Dip?

Why Is Bitcoin Falling Today? BTC Price Crash Explained & What’s Next

Bitcoin is in a rough spot, and investors are scrambling to understand why BTC is dropping today. Despite major institutional buys, the price has taken a hit, leaving many wondering if this is just another dip or the start of a deeper crash.

Let’s break down the key reasons behind Bitcoin’s decline, analyze market trends, and explore what could happen next.

Bitcoin Price Today: Market Overview

As of now, Bitcoin is trading at $91,917.43, reflecting a 3.74% drop in the last 24 hours. The total market cap sits at $1.82 trillion, while the 24-hour trading volume has surged 134.12% to $51.73 billion.

This sharp increase in trading volume signals high volatility, as panic-driven selling and speculative buying battle it out.

Why Is Bitcoin Dropping? 6 Key Reasons

1. Institutional Buys Aren’t Moving the Market

MicroStrategy recently purchased 20,356 BTC for $1.99 billion at an average price of $97,514 per Bitcoin. Their total BTC holdings now exceed 499,096 BTC worth over $33.1 billion.

Normally, such a massive buy would pump prices, but Bitcoin barely reacted. Why?

  • These large transactions often happen over-the-counter (OTC), keeping them off public exchanges to avoid price spikes.
  • This lack of impact has fueled speculation about market manipulation, raising concerns about Bitcoin’s short-term price movements.

2. Bitcoin ETFs Facing Massive Outflows

Bitcoin ETFs were once a game-changer, driving mainstream adoption. Now, they are fueling the decline.

  • On February 24, Bitcoin ETFs saw $357.81 million in net outflows, a sharp reversal from previous inflows.
  • Top players like Grayscale’s GBTC and Fidelity’s FBTC are witnessing major sell-offs, putting downward pressure on BTC.

These outflows suggest that institutional investors are either locking in profits or exiting due to market uncertainty.

3. Crypto Hacks & Scams Shaking Confidence

Recent security breaches have added fuel to the fire:

  • Bybit lost $1.5 billion in Ethereum due to a massive hack, wiping out 70% of its ETH holdings.
  • Infini suffered a $49.5 million exploit due to a smart contract vulnerability.
  • Popular meme coins like Car Coin and Melenia collapsed, exposing pump-and-dump schemes.

These events have triggered fear-driven sell-offs, pulling Bitcoin and the broader crypto market down.

4. Gold Is Outshining Bitcoin

With uncertainty rising, investors are moving their money into traditional safe-haven assets like gold.

  • Gold prices are currently hovering near $2,939.43 per ounce, close to an all-time high.
  • Some investors now view Bitcoin as “digital credit” rather than digital gold, weakening its appeal as a hedge against economic instability.

5. Declining Network Activity Signals Weak Demand

Bitcoin’s blockchain activity is slowing down, signaling reduced interest:

  • Active Bitcoin addresses have dropped to 900,000, down from 1.2 million in 2021.
  • Lower transaction volume indicates fewer people are using Bitcoin, a bearish signal for price action.

6. Bitcoin Liquidations Are Surging

  • In the past 24 hours, 285,503 traders were liquidated, totaling $887.08 million in losses.
  • The biggest single liquidation happened on BitMEX’s XBTUSD pair, worth $10 million.
  • Bitcoin alone saw $3.20 million in liquidations, mostly from short positions being wiped out.

This intense liquidation pressure has contributed to Bitcoin’s sharp decline.

Will Bitcoin Rise Again or Drop Further?

  • Bitcoin is at a critical juncture. While institutional buys show long-term confidence, short-term factors like ETF outflows, hacks, and reduced network activity are pulling it down.
  • Historically, Bitcoin has bounced back from similar crashes, but this time, external factors like global macroeconomic uncertainty and shifting investor sentiment could delay recovery.
  • If Bitcoin’s network activity and ETF inflows stabilize, we may see a rebound. Until then, expect volatility to continue.

Final Thoughts: Should You Buy the Dip?

  • The Crypto Fear & Greed Index is currently at 25 (Extreme Fear), showing high uncertainty.
  • However, Bitcoin’s trading volume is rising, suggesting that some investors are seeing this as a buying opportunity.
  • So, is this the right time to buy, or will Bitcoin drop further? No one knows for sure. The crypto market remains unpredictable, and risk management is key.

Stay informed, watch the trends, and make calculated decisions.

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