Bitcoin plunges below $91,000 amid market jitters

Bitcoin (CRYPTO:BTC) experienced a sharp decline, falling below $91,000, a level not seen since late November, leading analysts at Bitfinex to declare the situation a "critical juncture."

The price drop coincided with a broader downturn in the crypto market, which saw an 8% decrease, falling from $3.31 trillion to around $3.09 trillion.

The price of Bitcoin on February 25, 2025, at 00:06 UTC was $91,926.33.

However, earlier in the day, Bitcoin plummeted from $94,000 to $91,600 within one hour.

The decline expanded to nearly 4% over 24 hours.

The overall crypto market downturn led to significant liquidations, totaling over $961.65 million in a single day, with long positions accounting for $891.52 million and short positions for $70.14 million.

Bitcoin long bets took the brunt of the liquidations, with over $277 million wiped out.

Bitfinex analysts suggest that Bitcoin's price action is mirroring traditional markets.

The analysts noted a "similar stagnation in traditional financial markets" as a contributing factor, pointing to "macro-driven uncertainty."

The S&P 500 has fallen by 2.3% in the last five trading days, while the Nasdaq Composite has dropped 4% over the same period.

Analysts also cited a slowdown in institutional demand for Bitcoin through spot exchange-traded funds, with outflows totaling $552.5 million for the week ending Feb. 21.

Adding to market concerns, analysts pointed to weakening consumer confidence and rising expectations of further inflation in the U.S.

A University of Michigan Consumer Survey on Feb. 21 revealed a 10% drop in consumer sentiment from January to a 15-month low, reflecting "growing concerns about inflation and economic uncertainty" that could slow spending.

Proposed tariffs from President Donald Trump are "adding to inflationary pressures" and have undone some progress made in disinflation over the past two years. 

At the time of reporting, the Bitcoin (BTC) price was $91,896.78.