Emma Nelson 
Bitcoin Price Plummets to $86,586 – What’s Behind Today’s Crash? Bitcoin has taken a sharp hit, dropping to $86,586, down 8.71% in the last 24 hours. This unexpected price crash has triggered massive liquidations across the cryptocurrency market, leaving investors questioning the cause behind this sudden downturn.
Trump’s Tariff Threats Fuel Market Uncertainty
A major factor contributing to Bitcoin’s price crash is the renewed tariff threats from former U.S. President Donald Trump. On February 24, Trump announced that sweeping tariffs on Canada and Mexico would go into effect next week, ending the temporary pause that had been in place.
This announcement follows an earlier executive order on February 1, which imposed 25% tariffs on Mexican and Canadian goods along with an additional 10% duty on Canadian energy exports.
The re-escalation of trade tensions has heightened global market uncertainty, leading to a risk-off sentiment among investors. Since Bitcoin is often viewed as a risk-sensitive asset, its price was significantly impacted. During Tuesday’s early European trading session, BTC dropped to $86,200, extending its losses from the previous day.
The market reacted with massive liquidations amounting to $1.34 billion, affecting approximately 367,500 traders, according to Coinglass data. This wave of sell-offs underscores the widespread panic triggered by the tariff news.
BTC Price
Bybit Hack Intensifies Selling Pressure
Adding to the market turmoil was the Bybit security breach that occurred last week. In this incident, $1.4 billion worth of funds were stolen, leading to a $2 billion loss in Bitcoin reserves at Bybit, as reported by CryptoQuant.
Over 20,190 BTC were withdrawn from Bybit’s reserve between Friday and Tuesday, reaching reserve levels last seen in early March 2024. This massive withdrawal wave reflects growing anxiety among investors, who moved their assets to safer platforms.
The Bybit hack significantly contributed to the selling pressure on Bitcoin, compounding the impact of Trump’s tariff escalation. Although Bitcoin proponents argued that the hack was linked to Ethereum’s vulnerabilities, the market volatility spilled over to Bitcoin, amplifying its price decline.
Massive Liquidations Trigger Bearish Sentiment
The Bitcoin price crash has led to widespread liquidations throughout the cryptocurrency market. According to CoinGlass, nearly 390,000 traders were liquidated in the last 24 hours, resulting in a total loss of $1.59 billion. Notably, about 90% of these liquidations were from long positions, reflecting the market’s unexpected downturn.
One of the largest liquidation orders occurred on the Justin Sun-affiliated exchange, HTX, where a single trader lost $39.62 million, accounting for over 5% of all Bitcoin positions liquidated that day.
As Bitcoin’s price dropped to $86,000, its lowest level since mid-November, analysts began debating whether this was a temporary correction or the start of a prolonged bearish trend.
Geoff Kendrick from Standard Chartered predicted that BTC could fall to the low $80,000 range before a potential rebound, stating, “Before buying the dip is attractive, I think we get a $1 billion ETF outflow day.”
Meanwhile, market analyst Ali Martinez warned that BTC could drop to $80,000 if it breaks below key support levels. This cautionary outlook reflects the prevailing bearish sentiment among market participants.
Will Bitcoin Price Skyrocket to $1 Million?
Despite the ongoing Bitcoin crash, some industry leaders remain optimistic about Bitcoin’s long-term value. Binance’s co-founder, Changpeng Zhao (CZ), suggested that the current dip is merely a step toward higher valuations, even speculating that Bitcoin could reach $1 million in the future.
CZ compared the current market correction to previous cycles, emphasizing that Bitcoin historically rebounds after significant declines. His bullish outlook is echoed by Eric Trump, who urged Bitcoin holders to “buy the dip” amidst the price crash.
However, on-chain data paints a more cautious picture. The number of new Bitcoin addresses has dropped to 240,534 daily, the lowest since July 2024, signaling a decline in network activity and demand. Historically, such declines in network adoption have correlated with price drops, suggesting potential short-term weakness.
What’s Next for Bitcoin Price?
Currently, Bitcoin is trading at $87,086, with a 24-hour trading volume of $89.1 billion. Market analysts are closely watching the $86,000 support level, as breaking below this threshold could trigger further sell-offs.
However, a potential relief rally could occur if BTC rebounds from the 1-day 200 EMA, providing some optimism for short-term recovery.
The market remains divided between bullish long-term predictions from influential voices like CZ and Eric Trump and the bearish short-term outlook suggested by technical analysts.
As uncertainty continues to grip the market, investors are advised to exercise caution, closely monitor key support levels, and stay informed about macroeconomic developments, including Trump’s tariff policies and ongoing security issues in the crypto space.
With Bitcoin’s price volatility and mixed market sentiments, the next few days will be crucial in determining its future trajectory.
