Coinspeaker
Bitcoin Price Drops Below $93k Amid Declining Whale Demand, El Salvador Buys BTC Dip
After a failed bullish breakout above $98k last week, Bitcoin
BTC
$92 190
24h volatility:
3.7%
Market cap:
$1.83 T
Vol. 24h:
$50.86 B
price slipped below a crucial support level of $95.5k on Monday to approach the lower end of a possible horizontal range of around $92k. In the past 24 hours, Bitcoin price dropped over 3 percent to trade at about $92.7k at the time of this writing.
As a result, the wider altcoin industry followed in bearish sentiment led by Ethereum
BTC
$92 190
24h volatility:
3.7%
Market cap:
$1.83 T
Vol. 24h:
$50.86 B
), and Ripple Labs’
XRP
$2.29
24h volatility:
8.6%
Market cap:
$132.62 B
Vol. 24h:
$6.71 B
. According to the latest market data as of this writing, the total crypto market cap slipped over 6 percent to hover about $3.1 trillion, hence triggering net forced liquidations of over $730 million.
Meanwhile, crypto analyst Ali Martinez thinks that Bitcoin price must hold above the support level of $92k to avoid a major selloff towards $75k in the coming weeks.
Top Reasons Why Bitcoin Price Dropped Today
Bitcoin price has suffered bearish sentiment since the inauguration of US President Donald Trump mid-last month. The ongoing tariff trade wars have created short-term uncertainties in the wider global markets. As a result, the overall cash inflow to Bitcoin and its related products, led by US spot BTC ETFs, has significantly declined in the past few weeks.
For instance, market data from Glassnode shows that the net capital inflows to the crypto market declined from $52 billion to about $26.5 billion in the past 10 days. As Coinspeaker pointed out, the US spot BTC ETFs recorded a second consecutive weekly cash outflow of about $559 million, thus weighing down on bullish sentiment.
Meanwhile, the recent crypto hacks on major crypto exchanges led by Bybit have lowered the confidence in the Web3 space by institutional investors. Despite the favorable regulatory environment in the United States, the fear of further sophisticated hacks on Web3 protocols has reduced the overall confidence in blockchain security.
El Salvador Leads in Buying Dip
After pausing daily Bitcoin purchases in the last few days, El Salvador finalized a strategic purchase of 8 BTCs, worth about $750k, late on Monday. As a result, El Salvador now holds about 6,088 BTC, worth around $564 million at the time of this writing.
Nayib Bukele, the President of El Salvador, downplayed the short-term bearish volatility and investors not convinced of BTC’s long-term prospects. Bukele joined Strategy (NASDAQ: MSTR) in Bitcoin purchases, irrespective of the short-term bearish outlook.
As Coinspeaker reported earlier, Strategy purchased 20,356 BTC over the past few days, worth about $2 billion from the recently finalized convertible senior notes.
O ye of little faith… pic.twitter.com/Rkt8itUKzw
— Nayib Bukele (@nayibbukele) February 24, 2025
El Salvador believes other nations, led by the United States, will eventually adopt Bitcoin for their strategic asset reserve. Moreover, more nations are struggling with high debt-to-GDP ratios and gold has not performed well enough to hedge against global inflation.
Bitcoin Price Drops Below $93k Amid Declining Whale Demand, El Salvador Buys BTC Dip
