Author: Jesse Coghlan, CoinTelegraph; Translated by Wu Zhu, Jinse Finance
According to the analyst of the cryptocurrency exchange Bitfinex, Bitcoin once fell below $91,000, and Bitcoin is at a "critical moment" after experiencing a narrow range trading for nearly 90 days.
The analyst stated in the Bitfinex Alpha report on February 24 that during the three-month market stagnation, the trading price of Bitcoin was between $91,000 and $102,000, and it "remains at a critical moment after nearly 90 days of consolidation".
The analyst said: "The momentum needed to sustain a breakout has been lacking, leading to a period of contraction and consolidation for almost all major crypto assets."
According to CoinGecko, Bitcoin fell more than 4.5% in the past 24 hours, reaching a low below $91,000 - the lowest level since late November. The broader cryptocurrency market also fell 8% in the past day, from over $3.31 trillion to around $3.09 trillion.
CoinGlass data shows that the cryptocurrency market crash triggered a series of liquidations, with over $961.65 million liquidated in the past day, of which $891.52 million were long positions and $70.14 million were short positions.
Bitcoin long positions accounted for the largest share of the liquidations, with over $277 million liquidated in the past day.
In the past day, Bitcoin long positions led the liquidations in the cryptocurrency market, with the total liquidation amount approaching $1 billion. Source: CoinGlass
Bitfinex analysts stated that Bitcoin's correlation with traditional markets is becoming stronger, and a major factor affecting the stagnation of the cryptocurrency market is that "traditional financial markets have also experienced similar stagnation", which is caused by "macroeconomic uncertainty".
The S&P 500 index fell 2.3% in the past five trading days, while the Nasdaq Composite index fell 4% in the same period. Bitfinex stated that "broader market suppression has impacted risk assets, including cryptocurrencies."
The analyst added that institutional demand for Bitcoin through spot exchange-traded funds has also "significantly slowed", with a total outflow of $552.5 million per trading day in the week ending February 21.
Bitfinex stated that weakening consumer confidence and further rising inflation expectations pose challenges to the overall US economy.
The company pointed out that the University of Michigan consumer survey on February 21 found that US consumer confidence in February fell 10% from January to the lowest level in 15 months, reflecting "growing concerns about inflation and economic uncertainty", which may slow consumption.
Bitfinex analysts also said that a series of tariffs proposed by former President Trump "are adding to inflationary pressures" and offsetting some of the progress made in disinflation over the past two years.
