Bitcoin has slipped below the critical $90,000 mark, hitting a three-month low as broader market uncertainty weighs on crypto. The leading digital asset fell 7% to $86,915.13, with an intraday low of $86,128.21, according to Coin Metrics. This drop puts Bitcoin 20% off its all-time high, reached on President Donald Trump’s inauguration day.
Equities Sell-Off Spills into Crypto
Market volatility in equities has spilled over into the crypto sector, amplifying selling pressure. Steven Lubka, head of private clients at Swan Bitcoin, noted that “equities have faced a few difficult sessions,” with top-performing stocks suffering significant losses. Concerns over a slowing economy and persistent inflation have kept traditional markets on edge, dragging Bitcoin and other digital assets down.
The S&P 500 extended its three-day losing streak on Monday, struggling to recover from last week’s downturn. Without a clear short-term catalyst, many traders have opted for profit-taking, exacerbating downward momentum in Bitcoin.
Liquidations Mount as Traders Exit Positions
Bitcoin’s rapid descent triggered a surge in long liquidations, forcing traders to sell assets at market price to cover their positions. Data from CoinGlass shows that centralized exchanges saw $614.5 million in long liquidations over the past 24 hours.
The sell-off has been broad-based, with other major cryptocurrencies also taking a hit. Ether and Solana’s SOL both dropped 8%, while the meme coin sector suffered a staggering 15.5% loss. Libra, which gained attention last week after Argentine President Javier Milei mentioned it, tumbled 23%, and the Trump meme coin slid 13%.
Waiting for the Next Catalyst
Bitcoin’s bullish momentum earlier in the year was fueled by optimism surrounding the new Trump administration’s crypto policies. However, after Trump’s executive order on digital assets in late January—while well-received—failed to deliver any game-changing regulations, the market has been left waiting for its next major driver.
Joel Kruger, a market strategist at LMAX Group, believes that Bitcoin is currently in a “sell-the-fact” phase, consolidating as traders await fresh developments. Analysts caution that if Bitcoin breaks below the $90,000 support level, a further decline toward $80,000 or even $70,000–$75,000 remains a possibility.
Long-Term Outlook Remains Strong
Despite the short-term turbulence, market watchers remain confident in Bitcoin’s long-term trajectory. Lubka expects Bitcoin to stabilize and resume its upward trend by mid-March. With growing institutional adoption and expectations of favorable regulatory changes, many see the current downturn as a temporary pullback rather than a prolonged bear trend.
