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.
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.
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
Ash Tiwari
Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.
Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.
In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.
A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.
When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.
Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.
Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone. His practical involvement allows him to stay ahead of the curve, offering readers and enthusiasts a clear and comprehensive understanding of the rapidly evolving world of blockchain. Whether delving into the technical mechanics of DeFi or exploring the cultural impact of NFTs, Ash’s approach is always rooted in curiosity, research, and a desire to make this technology accessible to all.
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