Bitcoin (BTC) Price Drops to $82,000, a Level Last Seen in Early Nov. 2024

Recent Bitcoin price action saw the token's price drop to $82,00, a level last seen in early Nov. 2024. The plunge sent traders panicking

NOIDA (CoinChapter.com) - Bitcoin price today dropped to $82,100, a level last seen in early November. The plunge has traders panicking, and the wider consensus is leaning towards more downside for BTC in the immediate future.

After a brief recovery attempt, Bitcoin struggled to reclaim the $90,000 level and faced sustained selling pressure, slipping further below the $87,000 mark. The token is now down over 20% from its 2024 highs of $109,000, which were achieved earlier this year.

The cryptocurrency is facing pressure from multiple fronts. Firstly, Bitcoin ETF outflows have reached record levels, wiping out billions in institutional capital that once fueled Bitcoin's rally. Secondly, the U.S. dollar is showing signs of strength, which could make risk assets less attractive as macro jitters rattle global markets.

On-chain data from Glassnode confirms a shift in sentiment, with long liquidations surging, whales offloading holdings, and spot selling pressure outpacing demand.

These signals suggest that the market remains in a strong bearish control, with little sign of a reversal in the near term. However, for Bitcoin to recover towards $90,000, strong institutional inflows or a major shift in macro sentiment will be required.

Bitcoin ETF Outflows Signal Institutional Weakness

BTC ETFs were a major catalyst for the token's historic rally, pulling in over $40 billion in net inflows throughout 2024. However, the tide is now turning.

On February 25, Bitcoin ETFs recorded a staggering $937.9 million in net outflows, followed by another $754.6 million the next day.

Fidelity's Wise Origin Bitcoin Fund (FBTC) and BlackRock's iShares Bitcoin Trust (IBIT) led the sell-off, with IBIT alone losing $418.1 million.

This shift is crucial because ETF issuers hold actual BTC, so when investors withdraw, they sell Bitcoin to cover redemptions, adding direct selling pressure to the market.

As the ETF-based "basis trade" loses appeal, institutions are either cashing out or reallocating capital towards safer assets.

Cryptocurrency analyst Neil Roarty from ClickOut Media explains that the trend reflects shifting sentiment rather than a complete abandonment of Bitcoin.

"The launch of Bitcoin spot ETFs in the U.S. a little over a year ago was seen as a major driver of BTC's remarkable price growth in 2024, and we’re already seeing retracement as institutional investors search for safer havens. Does this mean the party’s over? Not necessarily. The entire equities market is also taking a battering as consumer confidence plummets and fears of an international trade war rise."

The ETF net inflow chart from Glassnode supports this shift. After a long stretch of strong inflows, the last few weeks have seen persistent outflows, which coincides with Bitcoin's decline.

If institutions continue exiting at this scale, Bitcoin could face extended selling pressure, potentially dragging prices toward $70,000 or lower.

Strengthening U.S. Dollar Adds Another Headwind For Bitcoin

Bitcoin's struggles are deepening as the U.S. dollar shows signs of strength, maintaining its historically inverse correlation with BTC.

The BTC vs. DXY chart from Glassnode shows a clear pattern: nearly every major Bitcoin rally coincided with a weakening dollar, while each sharp decline aligned with a period of dollar strength.

The current situation mirrors past downturns, with the dollar rising and Bitcoin facing sustained selling pressure. The DXY index is currently trading above 113, reflecting increased demand for U.S. assets, and the 10-year Treasury yield is also pushing higher.

As macro uncertainty deepens, investors are pivoting towards safer dollar-based investments, decreasing Bitcoin's appeal in a risk-off environment.

Moreover, market analyst Milad Azar from XTB MENA highlighted recent economic reports that are fueling the dollar's strength.

In a note to CoinChapter, Azar noted that a sharp decline in consumer confidence and mixed PMI numbers have raised concerns over economic growth, ultimately reinforcing the dollar's dominance in global markets.

These conditions are creating a two-fold problem for Bitcoin. A stronger dollar directly weakens Bitcoin's appeal, especially as rising Treasury yields offer guaranteed returns, making BTC's volatility less attractive.

With yields above 4.3 percent, investors seeking stability choose traditional assets like bonds over speculative cryptocurrencies. At the same time, global macro jitters are pressuring broader risk sentiment, further affecting Bitcoin in a correlated manner.

Furthermore, Senior Research Strategist at Pepperstone Michael Brown highlighted how economic uncertainty affects investor behavior.

In a note to CoinChapter, Brown pointed out that jitters over the U.S