Bitcoin Slides Below $90,000 as Crypto Selloff Gathers Steam

Bitcoin, the world's leading cryptocurrency, has plummeted below the $90,000 mark, as a broader selloff in the crypto market continues to gather momentum. The recent decline can be attributed to a combination of factors, including options expiry, macroeconomic indicators, and geopolitical events. As investors dump risky assets, the crypto market has witnessed over $1.13 billion in liquidations, with over 107K traders being liquidated in the past 24 hours.



The selloff in the crypto market coincides with a broader slide in equities in Asia-Pacific markets, with Japan's Nikkei 225 dropping over 12% after the Bank of Japan announced a hike in its benchmark interest rate. This hike, the highest level in 16 years, extended losses that began last week, contributing to the overall market weakness. In the U.S., the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index's worst three-week stretch since September 2022.



The recent market volatility and selloff can be attributed to fading bullish sentiment, as Donald Trump didn't mention crypto or Bitcoin in his speech, and the industry was awaiting an executive order on strategic Bitcoin reserves or crypto policy. The US SEC's announcement of the Crypto Task Force led by Commissioner Hester Peirce to develop a clear regulatory framework for crypto assets also contributed to the market's selloff.

The crypto market witnessed a selloff as bullish sentiment regarding Donald Trump’s inauguration faded. The global market cap tumbled over 3% to $3.52 trillion, with trading volume tanking 25% over the last 24 hours. The top crypto Bitcoin fell more than 3% to $102K as trading volume declined three-fold today as compared to Trump’s inauguration on Monday. Ethereum price also fell 3%, continuing the weak sentiment seen last week. Meanwhile, XRP, Solana, and other top altcoins mainly saw a 2-5% drop in the last 24 hours. Meme coin Dogecoin and Shiba Inu tumbled amid selloff by whales.



The recent selloff in the crypto market, particularly Bitcoin's decline below $90,000, can be attributed to several primary factors. Over $3 billion in Bitcoin and Ethereum options were set to expire on Friday, March 15, leading to significant volatility in the market. The put-call ratio for Bitcoin was 0.79, indicating a profit booking scenario while remaining bullish. For Ethereum, the put-call ratio was 0.69, suggesting traders were bullish but successfully booked profits above the max pain point.

The selloff also coincided with broader slides in equities in Asia-Pacific markets, including Japan's Nikkei 225 dropping over 12% after the Bank of Japan announced a hike in its benchmark interest rate. This hike, the highest level in 16 years, extended losses that began last week, contributing to the overall market weakness. In the U.S., the Nasdaq slid 3.4% last week into correction territory, capping off the tech-heavy index's worst three-week stretch since September 2022.

Liquidations amid liquidity flush and whales selloff also contributed to the market's selloff. Support from spot Bitcoin ETFs dropped with just $133 million inflow on Thursday, further exacerbating the market's weakness. Despite the meme coins hype these days, Dogecoin (DOGE) and Shiba Inu (SHIB) prices also saw heavy profit booking, tumbling 12% and 14% respectively. Traders and analysts predicted much-needed capitulation for the market to further rally amid Bitcoin halving.

In conclusion, the recent selloff in the crypto market, particularly Bitcoin's decline below $90,000, can be attributed to a combination of factors, including options expiry, macroeconomic indicators, and geopolitical events. As investors dump risky assets, the crypto market has witnessed over $1.13 billion in liquidations, with over 107K traders being liquidated in the past 24 hours. The broader slide in equities in Asia-Pacific markets and the U.S. also contributed to the overall market weakness. Despite the recent selloff, the crypto market remains a volatile and dynamic space, with the potential for significant price movements in either direction.