Earlier this morning, Bitcoin (BTC) hit a yearly low of $86,888 amid a broader market downturn. According to data from CoinGlass, the crypto market sell-off led to over $1.5 billion in liquidations in the past 24 hours, impacting 394,944 traders.
More Downside For Bitcoin?
After trading in the mid-$90,000 range for several weeks, BTC crashed to $86,888 on the Binance cryptocurrency exchange, marking its lowest point this year. The premier cryptocurrency is down 7.6% in the last 24 hours.
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Similarly, other major cryptocurrencies have suffered sharp declines. Ethereum (ETH) is down 10.5%, XRP has dropped 14.5%, and Solana (SOL) has plummeted 18.2% in the past 24 hours. Meanwhile, the total crypto market cap has shrunk by 9%, tumbling from $3.3 trillion to $3.01 trillion over the same period.
Despite the sharp market pullback, the worst may not be over for BTC just yet. According to Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, Bitcoin could still see further losses.
Kendrick noted that while BTC has performed “relatively well,” the flagship cryptocurrency remains caught in a broader market sell-off, partly driven by Solana-based meme coins. He warned that another 10% decline may be on the horizon, potentially pushing Bitcoin’s price down to the low $80,000s.
Macroeconomic Uncertainty Weighs On Crypto
Further, Kendrick emphasized that although a decline in US Treasury yields could eventually benefit BTC, the large outflows from Bitcoin spot exchange-traded funds (ETFs) suggest that “it is not time to buy yet.”
In addition to the crypto market downturn, US President Donald Trump reiterated yesterday that his proposed trade tariffs on Canada and Mexico are set to take effect on March 4. As a result, the equity market is expected to open lower today, adding further pressure to risk assets like cryptocurrencies.
The uncertainty in equity markets is expected to spill over into the digital assets sector, potentially leading to deeper pullbacks for cryptocurrencies. At the time of writing, the Crypto Fear and Greed Index has dropped to a five-month low of 25, signaling “extreme fear” in the market.
Bitcoin’s recent price breakdown aligns with an earlier forecast by seasoned crypto analyst Ali Martinez, who predicted that if BTC broke below $93,400, it could experience significant volatility.
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Beyond the recent price action, other warning signs for BTC indicate that reduced network activity could signal waning overall interest in the asset class. However, despite these headwinds, Bitcoin continues to outperform traditional asset classes like gold and stocks.
That said, many industry leaders remain bullish on Bitcoin, viewing the current macroeconomic environment as a “generational opportunity” to accumulate BTC. At press time, BTC trades at $88,150, down 7.6% in the past 24 hours.
Featured image from Unsplash, Chart from TradingView.com
