Emma Nelson 
Bitcoin Price Plummets to Lowest Level Since November 2024. Bitcoin’s price has experienced a sharp decline, reaching its lowest point since November 2024. Within just three days, the leading cryptocurrency fell by over $12,000, triggering the liquidation of more than $1 billion in leveraged long positions. This dramatic drop can be attributed to several key factors, including market uncertainty, intensified selling pressure from large-scale liquidations, and broader economic concerns.
Bitcoin Price Drops Over 12% Amid Increased Selling Pressure
On February 26, Bitcoin’s price fell to $83,500, reflecting a 12% decline over the past week. This significant drop resulted in substantial losses for traders holding long positions. According to CoinGlass data, over $1 billion in leveraged positions were liquidated during the downturn, further escalating the selling pressure.
Bitcoin Price
Following this wave of liquidations, a report from CoinGape highlighted the top 4 crypto tokens to consider buying during this dip: XRP, Solana, Ethereum, and SUI. Despite the current downturn, these altcoins show promise due to strong institutional inflows and solid underlying fundamentals.
The decline in Bitcoin’s price aligns with growing market fears, including concerns about a potential global economic downturn. Investors are increasingly turning to safer assets such as U.S. Treasurys and gold amidst heightened uncertainty.
Adding to the bearish sentiment, an analyst pointed to the Bybit hack as a contributing factor to market fears, which has intensified selling pressure.
Impact of Derivatives Market on Bitcoin Price Volatility
The derivatives market has also played a significant role in Bitcoin’s price movements. Analysts note that the upcoming $5 billion Bitcoin options expiry on February 28 is contributing to increased volatility. The “max pain” level for options is around $98,000, suggesting that investors may try to keep Bitcoin’s price within a specific range to minimize losses.
Options Expiry Amplifies Market Uncertainty
The approaching $5 billion options expiry on February 28 is a major driver of Bitcoin’s current price volatility. A large portion of these options are set at higher strike prices, making them likely to expire out of the money. Data from Deribit indicates that approximately 78% of the expiring Bitcoin options, valued at around $3.9 billion, are expected to be unprofitable.
Market participants might attempt to influence Bitcoin’s price to minimize their losses before the options expire. However, the ongoing market fear and recent liquidations make it challenging for bulls to regain control. Analysts suggest that unless Bitcoin recovers to at least $88,000 before the expiry date, traders holding call options could face significant losses, leading to further selling pressure.
Global Economic Concerns and Trade Tensions Impacting Bitcoin
Macroeconomic factors have also contributed to Bitcoin’s price decline. Economic uncertainty has increased due to reports of new U.S. tariffs on imports from Canada and Mexico. Additionally, Trump’s 25% tariff on EU imports has heightened market fears, causing increased volatility in global markets.
These trade tensions have prompted investors to seek safer assets, such as long-term U.S. Treasury bonds, reducing demand for high-risk investments like Bitcoin.
Corporate Earnings and Institutional Outflows Add to Selling Pressure
Concerns over corporate earnings are further influencing Bitcoin’s price movements. Nvidia’s upcoming earnings report has raised worries about the growth outlook for the AI sector, impacting the broader tech market. Additionally, Bitcoin-related firms like MicroStrategy have seen their stock prices decline, reflecting investor uncertainty about cryptocurrency stability.
Simultaneously, Bitcoin spot ETFs have seen significant outflows, contributing to the downward price trend. On February 24, over $1.1 billion was withdrawn from spot Bitcoin ETFs, marking the largest single-day outflow to date. This indicates that institutional investors are reducing their exposure to Bitcoin amid growing market volatility.
Data from IntoTheBlock further reveals that $1.3 billion worth of Bitcoin has been deposited onto cryptocurrency exchanges, signaling increased selling pressure as more Bitcoin becomes available for trading.
Current Market Overview and Outlook
As of the latest update, Bitcoin is trading at $84,743, with a market capitalization of $1.68 trillion and a 24-hour trading volume of $63.59 billion. Despite recent recovery attempts, Bitcoin remains under pressure from a combination of macroeconomic factors, market liquidations, and investor sentiment shifts.
Looking forward, analysts are closely monitoring the upcoming options expiry and broader economic trends to gauge Bitcoin’s next move. If Bitcoin manages to hold above key support levels, a rebound may be possible. However, continued volatility is expected as the market navigates ongoing economic challenges and investor sentiment shifts.
