Bitcoin Price Drops to $91,000 Levels as Crypto Market Crash Continues, Altcoins Could Face an Even Greater Collapse

Over the last 24 hours, the broader crypto market has lost more than $150 billion with the total market cap slipping under $3 trillion.

The crypto market crash continues to worsen as BTC price takes a deep dive, reaching levels as low as $91,000, with total market liquidations soaring to $914 million. Altcoins, on the other hand, might be experiencing a steeper crash in this liquidity crisis.

Bitcoin Leads Crypto Market Crash

Over the last 24 hours, the broader crypto market has seen losses exceeding $150 billion, with the total market capitalization slipping below the $3 trillion mark. Bitcoin losses have extended further by 4%, dropping to lows of $91,000 and slipping under key support levels.

According to data from Coinglass, 24-hour Bitcoins liquidations have topped $274 million, out of which $258 million is in long liquidations. Moreover, this selling pressure comes with a 150% surge in daily trading volumes to reach over $51 billion.

Further BTC Price Correction Coming?

Amid the sharp drop in the Bitcoin price, market analysts are highlighting warning signs, hinting at the possibility of further correction and a crypto market crash. For the first time since September 2024, Bitcoin demand has dropped into negative territory, as highlighted by Julio Moreno, the head of research at CryptoQuant.

Moreno pointed out the challenges faced by Bitcoin in the current market conditions, noting that such negative demand growth makes it difficult for prices to rally. He went on to warn that the risks of a further market correction are increasing.

Moreover, as noted by crypto analyst Ali Martinez, if BTC bulls fail to hold the $93,700 support on a daily closing basis, it risks falling further to the next major support at $75,600. The warning comes as market participants keep a close watch on Bitcoin’s price movements amid heightened volatility and macroeconomic uncertainty. At press time, BTC price is trading 3.6% down at $91,910 levels.

Bitcoin ETF Sell-Offs On The Rise

Additionally, last week, Bitcoin investments saw outflows to the tune of $571 million, while short-Bitcoin inflows surged to $2.8 million. Outflows from spot Bitcoin ETFs also increased, netting $516 million on Monday, with Fidelity’s FBTC seeing $247 million in outflows and BlackRock’s IBIT clocking $159 million in outflows.

Arthur Hayes has issued a stark warning about potential turbulence in the Bitcoin market. Hayes explained that many $IBIT holders, especially hedge funds, have employed a strategy to secure yields that outpace short-term U.S. Treasury rates by going long on ETFs and short on CME futures. However, if the basis narrows due to declining BTC prices, these funds might sell $IBIT holdings and repurchase CME futures to unwind their positions.

With the basis currently approaching U.S. Treasury yields, Hayes suggests that these funds, already in profit, might make their move during U.S. trading hours to realize gains.

Altcoins See A Steeper Fall

Amid major liquidity challenges and a sharp sell-off in the S&P 500, the sell-off in the altcoin space has accelerated in this crypto market crash. Ethereum price is down today by 8%, slipping under $2,500 today, with daily trading volume surging to $31.6 billion, and 24-hour liquidations surging to $195 million.

Furthermore, altcoins like Solana have experienced even steeper falls in relation to Bitcoin. Solana has suffered the biggest hit, falling more than 22% since last Friday.

The Bybit hack on February 21 has cast a shadow over market sentiment, shaking investor confidence. Arkham Intelligence has labeled the incident the “largest financial heist in history,” underscoring the magnitude of the breach and its impact on the cryptocurrency landscape. However, the crypto exchange Bybit managed to acquire all of Ethereum within just 48 hours of the incident.

In a surprising turn of events, Citadel Securities made a significant shift in its crypto strategy just hours before a notable market response. According to Bloomberg, the $65 billion financial giant is exploring becoming a liquidity provider for Bitcoin and other cryptocurrencies. However, the market interpreted the news as a “sell the news” moment, prompting a cautious reaction among traders.