The cryptocurrency market is undergoing one of its most intense correction phases in recent months, with Bitcoin (BTC) plunging to $91,000 and total liquidations exceeding **$914 million** in just 24 hours. The sharp sell-off has been fueled by a combination of macroeconomic uncertainty, ETF outflows, and deteriorating on-chain demand—signaling a deepening liquidity crisis across both Bitcoin and altcoins.
This article breaks down the key drivers behind the ongoing crypto market crash, analyzes expert predictions for BTC’s next move, and explores how altcoins are being disproportionately impacted.
Bitcoin Leads the Market Downward
Over the past 24 hours, the global crypto market shed more than $150 billion** in value, pulling the total market capitalization below **$3 trillion. At the center of the downturn is Bitcoin, which dropped over 4%, breaching critical technical support levels and settling near $91,000.
According to Coinglass data, Bitcoin alone accounted for $274 million** in liquidations—**$258 million of which came from long positions. This suggests that leveraged bulls were aggressively wiped out as prices reversed sharply. Compounding the pressure, daily trading volume spiked by 150%, surpassing $51 billion, indicating heightened panic and institutional-level selling.
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The breakdown below key support zones has triggered bearish sentiment across technical traders. With momentum shifting rapidly, many are questioning whether this is just a correction—or the beginning of a deeper bearish cycle.
Is Further Bitcoin Price Correction Inevitable?
Market analysts are increasingly warning of further downside risk for Bitcoin. Julio Moreno, Head of Research at CryptoQuant, noted that Bitcoin’s on-chain demand has turned negative for the first time since September 2024—a significant red flag.
Negative demand indicates that more coins are being moved from wallets to exchanges than are being withdrawn—a strong signal of selling pressure. Moreno emphasized that such conditions make it extremely difficult for prices to recover without a fundamental shift in investor behavior.
"When demand turns negative, it reflects a loss of confidence. Without new buying interest, any rally will be short-lived."
Adding to the caution, crypto analyst Ali Martinez highlighted a crucial technical threshold: if Bitcoin fails to close above $93,700** on a daily basis, it could plummet to the next major support zone at **$75,600. As of now, BTC is trading around $91,910, down 3.6%, leaving little room for error.
Source: Ali Charts
The market is now in a holding pattern, waiting for either a strong rebound or confirmation of a breakdown. With macroeconomic factors like interest rate uncertainty and geopolitical tensions adding to the mix, volatility is expected to persist.
Bitcoin ETF Outflows Signal Institutional Retreat
One of the most alarming developments in this downturn is the surge in spot Bitcoin ETF outflows. On Monday alone, net outflows reached $516 million**, with major players like **Fidelity’s FBTC** (-$247M) and BlackRock’s IBIT** (-$159M) seeing significant redemptions.
Arthur Hayes, former CEO of BitMEX, issued a stark warning about the implications of these moves. He explained that many hedge funds have been using a yield-arbitrage strategy: going long on spot ETFs like IBIT while shorting CME Bitcoin futures to capture spreads above U.S. Treasury yields.
However, as BTC prices fall, the basis (the difference between spot and futures prices) narrows. When this spread compresses close to Treasury yields, these funds have strong incentives to unwind their positions—selling ETF shares and buying back futures to lock in profits.
“The basis is now nearing Treasury yields. Funds already in profit will likely act during U.S. trading hours,” Hayes noted on social media.
This dynamic creates a self-reinforcing cycle: falling prices trigger ETF selling, which pushes prices lower, prompting more unwinding.
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Altcoins Crushed in Liquidity Crunch
While Bitcoin’s drop has been severe, altcoins are experiencing even steeper declines amid worsening liquidity conditions.
Ethereum (ETH) dropped over 8%, falling below $2,500**, with liquidations hitting **$195 million in 24 hours. Trading volume surged to $31.6 billion, reflecting intense capitulation among leveraged traders.
But the hardest hit has been Solana (SOL), which plunged more than 22% since last Friday—significantly underperforming Bitcoin. Analysts attribute this to reduced staking activity and declining DeFi inflows during periods of market stress.
Source: The Kobeissi Letter
Other major altcoins—including XRP, DOGE, and SHIB—also saw double-digit percentage drops, as risk-off sentiment spreads across the ecosystem.
Market Sentiment Shaken by Security and Regulatory Concerns
Several external factors have amplified fear in the market:
- The Bybit hack on February 21 rattled investor confidence, with Arkham Intelligence calling it the “largest financial heist in history.” Although Bybit managed to recover all lost Ethereum within 48 hours, the incident exposed vulnerabilities in centralized exchanges.
- Meanwhile, news that Citadel Securities—a $65 billion financial giant—is exploring a role as a crypto liquidity provider was initially seen as bullish. However, markets reacted with a classic “sell the news” move, likely due to concerns over increased institutional control and potential overhang from large sell orders.
Frequently Asked Questions (FAQ)
What caused the $914 million in crypto liquidations?
The massive liquidations were triggered by a sudden drop in Bitcoin and altcoin prices, which activated stop-loss orders and margin calls on leveraged positions—especially longs on derivatives exchanges.
Why is Bitcoin demand negative?
Negative demand means more Bitcoin is flowing into exchanges than being withdrawn. According to CryptoQuant, this reflects increased selling pressure and reduced confidence among long-term holders.
Could Bitcoin really fall to $75,600?
Analyst Ali Martinez identifies $75,600 as the next major support level if BTC fails to reclaim $93,700. While not guaranteed, technical patterns suggest this is a plausible scenario under continued selling pressure.
Are ETF outflows bearish for Bitcoin?
Yes. Sustained outflows from spot Bitcoin ETFs indicate weakening institutional demand. When large funds unwind arbitrage positions—as Arthur Hayes warned—it can accelerate downward price movements.
Which altcoins were hit hardest?
Solana (SOL) saw over a 22% drop, making it one of the worst performers. Ethereum also declined sharply, down 8%, while meme coins like Dogecoin and Shiba Inu faced steep corrections amid risk aversion.
Is this crypto market crash over?
Not necessarily. With negative on-chain signals, rising volatility, and uncertain macro conditions, further downside remains possible. However, sharp corrections often create long-term buying opportunities for patient investors.
Core Keywords
- Bitcoin price crash
- Crypto liquidations
- BTC ETF outflows
- Altcoin market downturn
- Cryptocurrency liquidity crisis
- Bitcoin support levels
- Market volatility
- Negative demand Bitcoin
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As the crypto market navigates this turbulent phase, understanding on-chain trends, ETF flows, and technical levels becomes critical. While fear dominates headlines today, history shows that resilience often follows crisis—especially for assets with strong fundamentals like Bitcoin and leading altcoins.
For now, traders should prioritize risk management, avoid over-leverage, and watch key support levels closely. The path forward may be volatile—but informed decisions can turn turbulence into opportunity.