Bitcoin has dropped to a three-month low, breaking below the $90,000 mark as selling pressure from equities spills into the crypto market. The leading cryptocurrency slid as low as $86,128.21, its lowest since November, before recovering slightly.
Equities Sell-Off Weighs on Bitcoin
The decline in Bitcoin’s price comes as stock markets struggle with uncertainty under the new U.S. administration. The S&P 500 has faced consecutive losing sessions, driven by concerns over a slowing economy and persistent inflation.
“Equities have had a tough week, and that pressure has spilled into Bitcoin and the broader crypto market,” said Steven Lubka, head of private clients at Swan Bitcoin.
Liquidations Add to the Pressure
Bitcoin’s drop triggered a wave of long liquidations, forcing traders to sell assets at market prices to cover losses. In the past 24 hours, centralized exchanges have recorded $614.5 million in long liquidations, according to CoinGlass.
Lack of Catalysts Keeps Bitcoin in a Holding Pattern
Bitcoin’s early-year rally was fueled by optimism over the new Trump administration’s stance on crypto. However, since the release of a widely anticipated executive order in January, the market has struggled to find a fresh bullish catalyst.
“From November through January, traders were pricing in a pro-crypto U.S. government,” said Joel Kruger, market strategist at LMAX Group. “Now, the market is in a wait-and-see mode, looking for the next driver.”
What’s Next for Bitcoin?
Analysts warn that a sustained break below $90,000 could push Bitcoin toward the $80,000 level, with some suggesting a potential retest of the $70,000–$75,000 range. Despite this, long-term sentiment remains bullish, with expectations of a recovery by mid-March.
Meanwhile, altcoins have suffered steeper losses. Ethereum and Solana each dropped 8%, while the meme coin sector plunged 15.5%. Libra, a coin briefly promoted by Argentine President Javier Milei, fell 23%, and the Trump-themed meme coin declined 13%.
As Bitcoin continues to move in tandem with macroeconomic trends, investors will be closely watching for the next big market catalyst.
