Advertise
Mustafa Mulla
Mustafa Mulla
Author
Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.
- Mar 07, 2025 06:59 UTC
-
Why Is Bitcoin Price Falling Today?
-
BTC $ 82,459.90 (-3.02%) 
Bitcoin struggles to hold $89,041 support, increasing the risk of dropping to $85,000 or lower.
Uncertainty over U.S. Bitcoin reserve plans fuels investor skepticism and market sell-off.
Bitcoin ETFs see $134.3 million outflows, led by BlackRock, Grayscale, and Franklin Templeton.
$531 million in liquidations add selling pressure, with long traders losing $398.3 million.
Bitcoin’s price has taken a sharp hit, falling 4% in the past 24 hours and raising concerns among investors. The global crypto market lost nearly $99 billion during the same period, bringing the total market cap down to $2.89 trillion.
But what’s behind this sudden drop? Here are the key reasons driving Bitcoin’s latest decline.
Trump’s Bitcoin Reserve Announcement Sparks Uncertainty
Bitcoin initially surged to $92,000 after President Donald Trump announced plans for a U.S. Strategic Bitcoin Reserve. However, the rally was short-lived as investors quickly realized the executive order did not clarify how the government would acquire more Bitcoin.
The lack of details on whether the U.S. will buy more Bitcoin or simply hold onto its seized BTC has made investors uneasy. Some analysts, including Peter Schiff, believe this uncertainty could hurt Bitcoin’s long-term growth.
Bitcoin ETFs See Heavy Outflows
Another reason for Bitcoin’s drop is the significant outflow from Bitcoin spot ETFs. According to Farside data, Bitcoin spot ETFs recorded a massive outflow of $134.3 million. This came right after a day of positive inflows, where Bitcoin ETFs saw $22.1 million entering the market.
Leading the outflows was BlackRock’s iShares Bitcoin Trust (IBIT), which saw a $50.6 million outflow, followed by Grayscale Bitcoin Trust (GBTC) with $34.5 million and Franklin Templeton’s fund with $18 million in outflows.
No other major ETF recorded a net inflow, indicating strong selling pressure from institutional investors.
Rising Liquidations Add to Selling Pressure
On top of ETF outflows, a surge in market liquidations has increased selling pressure. In the last 24 hours, traders lost a total of $531 million, with long positions taking the hardest hit. Long traders accounted for $398.3 million of these liquidations, while short traders lost $133 million.
A total of 152,576 traders were affected, with the largest single liquidation happening on Bitfinex’s BTC/USDT pair, valued at $15.4 million. As more long positions get liquidated, selling pressure builds, pushing Bitcoin’s price even lower.
Bitcoin’s Technical Outlook – More Losses Ahead?
Bitcoin is struggling to hold a key support level. It is currently trading just below the crucial $89,041 mark. If it fails to reclaim this level, the price could drop further toward $85,000 or even $82,761.
However, if Bitcoin breaks above the $90,800 resistance and turns it into support, it could attempt a recovery toward $93,625.
Bitcoin has faced volatility before, but with institutional sell-offs and liquidation spikes, the road ahead looks anything but smooth.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
Crypto dropped due to Bitcoin’s decline, ETF outflows, liquidations, and uncertainty over President Trump’s U.S. Strategic Bitcoin Reserve announcement.
If Bitcoin flips $90,800 into support, it may rebound to $93,625. Otherwise, continued selling pressure could push it toward $85,000 or lower.
Institutional investors withdrew $134.3M from Bitcoin ETFs, led by BlackRock and Grayscale, increasing selling pressure and lowering Bitcoin’s price.
Yes 
No 
