Bitcoin (BTC) Market Falls Under $91,000 and is at a “critical juncture”

Bitcoin has fallen over 4.5% in the past 24 hours, hitting a low of under $91,00 — its lowest price since late November

Bitcoin price fell below $91,000 on Feb. 22, continuing a lower trend in the cryptocurrency market as traders await further cues from traditional markets and assess the outlook for inflation.

Bitcoin dropped 4.5% lower overnight, hitting a low of under $91,000 — its lowest price since late November, CoinGecko data shows. The wider crypto market also fell 8% in the past 24 hours, moving from over $3.31 trillion to around $3.09 trillion.

Bitcoin price fell sharply on Feb. 22, hitting a low of under $91,000. Source: CoinGecko

Crypto market liquidations hit $961.65 million

A total of over $961.65 million in crypto market liquidations were sparked by the market sell-off, with $891.52 million of those being long bets and $70.14 million being short bets, according to data from CoinGlass.

Long Bitcoin bets took the lion’s share of liquidations, with over $277 million wiped out in the past 24 hours.

Bitcoin long bets led the crypto market liquidations in the past day, which neared $1 billion in total. Source: CoinGlass

Related: Bitcoin price drops below $92K as US markets open with a sell-off

Bitcoin price stalls as traditional markets pause for direction, inflation outlook

According to analysts at crypto exchange Bitfinex, a key factor affecting a stalled crypto market is “a similar stagnation in traditional financial markets” brought about by “macro-driven uncertainty.”

The S&P 500 fell by 2.3% in the last five trading days, while the Nasdaq Composite dropped 4% over that same time. Bitfinex said that the “broader equity market's suppression has affected risk assets in general, including cryptocurrencies.”

The analysts noted that institutional demand for Bitcoin through spot exchange-traded funds also “slowed significantly,” seeing outflows on every trading day for the week ending Feb. 21 totaling $552.5 million.

Bitcoin price saw outflows from spot ETFs for four out of the past five weeks. Source: Bitfinex Markets

They added that the wider United States economy is being challenged by weakening consumer confidence and rising expectations of further inflation.

The analysts pointed to a Feb. 21 University of Michigan Consumer Survey, which found that US consumer sentiment in February fell by 10% from January to a 15-month low, reflecting “growing concerns about inflation and economic uncertainty” that could slow spending.

Bitfinex also noted that a raft of proposed tariffs from President Donald Trump “are adding to inflationary pressures” and have undone some progress made in disinflation over the past two years.