Bitcoin Drops Below $91K as Crypto Market Slumps

Bitcoin's price has dipped below $91,000, marking a critical juncture in its recent trading history, according to analysts at crypto exchange Bitfinex. The cryptocurrency has been trading within a tight range between $91,000 and $102,000 for nearly three months, with a lack of momentum leading to a period of consolidation across major crypto assets.

Bitcoin's price has fallen by over 4.5% in the past 24 hours, reaching a low of under $91,000, its lowest level since late November. The wider crypto market has also experienced a significant drop, with a total market capitalization decrease of around 8% in the past day, from over $3.31 trillion to around $3.09 trillion.

The crypto market's decline has resulted in a cascade of liquidations, with over $961.65 million in positions being liquidated in the last day. Long Bitcoin bets accounted for the lion's share of these liquidations, with over $277 million wiped out in the past day.

Bitfinex analysts have noted that Bitcoin's correlation with traditional markets is increasing, with a similar stagnation in traditional financial markets being a major factor affecting the crypto market. The S&P 500 and Nasdaq Composite have both experienced significant declines in recent trading days, with the broader equity market's suppression affecting risk assets in general, including cryptocurrencies.

Institutional demand for Bitcoin through spot exchange-traded funds has also slowed significantly, with outflows totaling $552.5 million over the week ending Feb. 21. This slowdown in institutional demand, combined with weakening consumer confidence and rising inflation expectations, has contributed to the current state of the crypto market.

Bitfinex analysts have highlighted the challenges facing the US economy, including weakening consumer confidence and rising inflation expectations. A University of Michigan Consumer Survey found that US consumer sentiment in February fell 10% from January to a 15-month low, reflecting growing concerns about inflation and economic uncertainty that could slow spending.

Additionally, a raft of proposed tariffs from President Donald Trump is adding to inflationary pressures, potentially undoing some of the progress made in disinflation over the past two years. These macro-driven uncertainties are contributing to the current state of