Bitcoin’s price is expected to continue declining, with analysts warning of a potential drop to $81,000 due to ongoing outflows from exchange-traded funds (ETFs) and market uncertainty.
According to Cointelegraph MarketsPro data, Bitcoin (BTC) fell to a three-month low of $87,629 on Feb. 25, breaking the psychological support line of $90,000 for the first time since Jan. 13.
The main reason behind the current sell-off is the diminishing risk appetite among crypto investors, as stated by Ryan Lee, chief analyst at Bitget Research.
In the absence of positive catalysts, Lee believes that the correction could push the Bitcoin price as low as $81,000. He stated to Cointelegraph:
“The Bitcoin price is currently moving within a consolidation range, and if the bears continue to push it below its support levels, the next levels to be tested are around $86,000 and $81,000.”
This correction occurred despite Michael Saylor’s Strategy making a $2 billion investment in Bitcoin shortly after raising $2 billion in a senior convertible note offering, as reported by Cointelegraph on Feb. 24. The lack of a positive price response suggests that Bitcoin may need significant momentum to recover, according to Lee.
There is a risk that Bitcoin’s price may fall below the key support level of $85,000, which could trigger over $1 billion worth of leveraged long liquidations across all exchanges, according to CoinGlass data.
Hong Yea, the co-founder and CEO of hybrid crypto exchange GRVT, stated to Cointelegraph:
“The $85,000 level is crucial—if BTC breaks below this support, it could lead to further declines. Geopolitical concerns, economic uncertainties, and unpredictable policy changes affecting broader business and economic issues could push BTC below $85,000 in the short term.”
The recent $1.4 billion Bybit hack, the largest in crypto history, also had a significant impact on the market, although its effects are not expected to be long-lasting, Yea concluded.
Bitcoin’s decline followed a wave of selling in US spot Bitcoin ETFs, which saw more than $516 million in net outflows on Feb. 24 alone. According to data from Farside Investors, the ETFs have now experienced six consecutive days of selling since Feb. 18, resulting in a more than 7% drop in Bitcoin’s price.
Analysts: Bitcoin Faces Potential Plunge to $81K in Absence of $85K Support