Bitcoin kept its stable track between February and April before falling beneath its $90,000 peak after past attempt during the period failed to hit new price records. The Bitfinex Alpha report shows BTC prices kept falling because of current events combined with global economic concerns.
Though Bitcoin experienced normal price movement the market preserved the 6.5% trading range on February 21 when prices crossed $99,574 to end at $96,346. Bitcoin dropped 7.5% right after setting its $88,600 peak value.
Bybit security issues led investors to sell assets before S&P 500 options experienced their expiration point. The end of trading options for the S&P 500 caused investors to sell abruptly and pushed Bitcoin value down 4.7% to drop below $95,000.
Bitcoin Declines 19% Despite Strong November Growth
By Feb. 22 Bitcoin price hit its lowest point since reaching its peak by falling 5.9% but dropped 19% below its previous maximum amount after moving 48.4% higher in November 2024. The value of Ethereum and Solana reduced 16.9% and 33.1% at the same time during major market downturns.
Meme coin prices decreased across the market during the selling surge which made big market movements its hallmark. The crypto market including memecoins increased 90.2% during December 2024 before decreasing 37.4% because a 12% slump across every memecoin happened during the following twelve hours.
The present downturn touches more than digital assets because traditional stock markets show similar adverse trends. The Standard and Poor’s 500 stock index has shown weakness since 6000 and started its trading day at 5950.
On Feb. 21 stocks declined 2.1% the same percentage as other risky assets like cryptocurrencies stopped growing. The crypto market continued falling on Feb. 24 because investors remain linked between traditional and digital asset performance when facing market risks.
Bitcoin exchange-traded funds show lower purchasing numbers because institutional investors no longer see much value in them. New Bitcoin ETF buying in America decreased from a previous daily acquisition volume between 4,000 to 5,000 BTC to below 1,000 BTC per day.
ON February 20 ETF investors sent $360 million back to the market which demonstrated their changing mindset. The market showed active buying activity at lower price points during this period because Bitcoin ETFs earned 8% of all global spot trading volume on February 21.
Ethereum ETFs See Minimal Inflows as Investors Pull Back
Many Ethereum ETF funds receive almost no new investment money maintaining their minimal buying activity. Investors choose to reduce their crypto investments because they want to avoid potential market risks at this time.
Capital inflows into the digital asset market across all major perpetual future platforms have decreased during this period. In the last 30 days Bitcoin’s open interest fell 11.1% compared to 23.8% on Ethereum and 6.2% on Solana.
Memecoins took the biggest hit as OI dropped by 52.1% since investors stopped buying them for speculation. Traders cut back their risk exposure to protect themselves from market risks and slowing momentum.
Speculative investors show decreased risk-taking behavior because Bitfinex Alpha found assets with high volatility experience the strongest decrease in open interest.
Bitcoin demand is in negative growth territory for the first time since September last year.
Difficult for prices to rally in these conditions and the risks of a further correction increase. pic.twitter.com/JtH8JQ0B4o
— Julio Moreno (@jjcmoreno) February 24, 2025
Julio Moreno from CryptoQuant saw through on-chain data that Bitcoin demand reached an unprecedented negative growth phase in October after reviewing it. The decrease in customer buying power makes it harder for BTC to bounce back and increases the risk of strong market falls.
Investor sentiment has also deteriorated. According to Milk Road on X data Bitcoin trades 14% below its peak at $109,354 at this moment. Markets show the same cycle today as they did when Bitcoin reached $55,000 in August 2024 until its unexpected drop.
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