The Bitcoin price has recently fallen to $87,000, marking its lowest point since November 2024. This decline is attributed to significant sell-offs in Bitcoin exchange-traded funds (ETFs), a major security breach at the Bybit exchange, and a surge in liquidations. Additionally, ongoing geopolitical tensions have further influenced investor sentiment.
Table of Contents
- Introduction
- Key Takeaways
- Current Bitcoin Price Overview
- Factors Contributing to the Price Drop
- Historical Context of Bitcoin Price Corrections
- How to Buy Bitcoin Using Gemini
- Frequently Asked Questions (FAQs)
- Conclusion
Key Takeaways
- Bitcoin Price Decline: The cryptocurrency has dropped below $90,000 for the first time in over three months.
- ETF Sell-Offs: Over $516 million in net outflows from U.S. Bitcoin ETFs were recorded on February 24.
- Bybit Hack: A $1.5 billion security breach at the Bybit exchange has shaken investor confidence.
- Surge in Liquidations: Total crypto liquidations have surpassed $1.3 billion in the past 24 hours.
- Geopolitical Impact: U.S.-China trade tensions are contributing to market volatility.
Current Bitcoin Price Overview
As of February 25, 2025, Bitcoin is trading at $88,913, reflecting a decrease of $6,501 (approximately 6.81%) from the previous close. The day’s trading range has seen a high of $95,664 and a low of $86,987.
Factors Contributing to the Price Drop
ETF Sell-Offs
On February 24, U.S. Bitcoin ETFs experienced net outflows exceeding $516 million, marking the sixth consecutive day of withdrawals. In the two weeks leading up to February 21, cumulative net outflows totaled over $1.14 billion, the highest two-week withdrawal period since their inception in January 2024. These sell-offs have exerted downward pressure on Bitcoin’s price.
Bybit Hack
A significant security breach occurred on February 21 at the Bybit exchange, resulting in the theft of approximately $1.5 billion worth of Ether. This incident, now considered the largest crypto theft in history, has severely impacted market sentiment, leading to a sell-off that has affected Bitcoin and other major cryptocurrencies.
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Mounting Liquidations
The recent market volatility has led to over $1.3 billion in total cryptocurrency liquidations within the past 24 hours, affecting approximately 362,000 traders. Bitcoin alone accounted for $523 million of these liquidations. Such extensive liquidations can trigger further price declines as leveraged positions are forcibly closed.
Geopolitical Tensions
Ongoing trade tensions between the United States and China have also impacted investor confidence. Recent statements from U.S. President Donald Trump regarding potential trade deals with China have introduced uncertainty, contributing to the current market downturn.
Historical Context of Bitcoin Price Corrections
Historically, Bitcoin has undergone multiple corrections similar to the current scenario. In 2017, for instance, Bitcoin experienced five corrections averaging 28%, each lasting two to three months. These patterns suggest that while the current decline is significant, it aligns with Bitcoin’s historical volatility.
How to Buy Bitcoin Using Gemini
For those interested in purchasing Bitcoin during this period, Gemini offers a secure and user-friendly platform. Here’s a step-by-step guide:
Creating a Gemini Account
- Visit the Crypto Exchange: Navigate to the Gemini website.
- Sign Up: Click on the “Get Started” button and enter your email address and a strong password.
Verifying Your Identity
- Personal Information: Provide necessary details such as your full name, date of birth, and address.
- Documentation: Upload a government-issued ID (e.g., passport or driver’s license) as part of the verification process.
Funding Your Account
- Link a Bank Account: Connect your bank account to facilitate transfers.
- Deposit Funds: Initiate a transfer of the desired amount into your Gemini account.
Purchasing Bitcoin
- Navigate to Bitcoin: On the Gemini platform, select Bitcoin from the list of available cryptocurrencies.
- Place an Order: Choose the amount you wish to purchase and confirm the transaction.
For more detailed instructions, refer to Gemini’s official guide on how to buy Bitcoin.
Frequently Asked Questions (FAQs)
What caused the recent drop in Bitcoin’s price?
The decline is primarily due to significant sell-offs in Bitcoin ETFs, a surge in liquidations, and ongoing geopolitical tensions between the U.S. and China.
How do ETF sell-offs impact Bitcoin’s price?
Large outflows from Bitcoin ETFs increase the supply of Bitcoin in the market, leading to downward pressure on its price.
What are liquidations in the cryptocurrency market?
Liquidations occur when leveraged positions are forcibly closed by exchanges due to margin calls, often leading to further price declines.
Is this decline similar to previous Bitcoin price corrections?
Yes. Bitcoin has experienced multiple price drops in the past. Historical corrections have averaged around 25-30% before recovery.
How did the Bybit hack contribute to the sell-off?
The recent Bybit security breach caused panic among investors, leading to withdrawals and increased selling pressure on Bitcoin.
Should I buy Bitcoin during this dip?
It depends on your risk tolerance. Some investors see dips as buying opportunities, while others wait for stabilization.
Will Bitcoin recover from this drop?
Bitcoin has historically rebounded from corrections, but market conditions and external factors influence its future movement.
How can I protect my Bitcoin investments?
Use hardware wallets, enable two-factor authentication, and avoid storing large amounts on exchanges.
