Bitcoin falls under $91K — Bitfinex says it’s at a ‘critical juncture’
Bitcoin fell under $91,000 and is at a “critical juncture” after the cryptocurrency has seen nearly 90 days of tight range-bound trading, according to analysts at crypto exchange Bitfinex.Bitcoin has traded between $91,000 and $102,000 for around three months amid a stall in market momentum and “remains at a critical juncture after nearly 90 days of consolidation,” analysts said in the Feb. 24 Bitfinex Alpha report.“The momentum required for a sustained breakout has been lacking, and this has led to a period of contraction and consolidation across almost all major crypto assets,” the analysts said.Bitcoin has fallen over 4.5% in the past 24 hours, hitting a low of under $91,00 — its lowest price since late November, according to CoinGecko. The wider crypto market has also fallen 8% in the past day, from over $3.31 trillion to around $3.09 trillion.The crypto market fall sparked a cascade of liquidations, with over $961.65 million liquidated in the last day, split between $891.52 million long bets and $70.14 million short bets, CoinGlass data shows. Long Bitcoin bets took the lion’s share of liquidations, with over $277 million wiped out in the past day.Bitfinex analysts said that Bitcoin is increasingly correlating with traditional markets, and a major factor affecting a stalled crypto market is “a similar stagnation in traditional financial markets” that’s been brought about by “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 that same time. Bitfinex said that the “broader equity marketʼs suppression has affected risk assets in general, including cryptocurrencies.”The analysts added that institutional demand for Bitcoin through spot exchange-traded funds has also “slowed significantly,” seeing outflows on every trading day for the week ending Feb. 21 totaling $552.5 million.Bitfinex said that the wider US economy is challenged by weakening consumer confidence and rising expectations of further inflation.It noted a Feb. 21 University of Michigan Consumer Survey, which found that US consumer sentiment in February fell 10% from January to a 15-month low which reflected “growing concerns about inflation and economic uncertainty” that could slow spending.Bitfinex analysts also said that a raft of proposed tariffs from President Donald Trump “are adding to inflationary pressures” and have undone some progress made in disinflation over the past two years.