GuShiio.com ① The price of Bitcoin currently falls to US$84570, down about 4% in 24 hours and 22.85% from its January high;
② The U.S. Bitcoin ETF had a net outflow of funds for six consecutive days, with a total size of US$2.24 billion, the longest record since June last year;
③ The sell-off was related to Trump’s tariff threat. The market was worried that tariff conflicts and U.S. technology export restrictions would affect the economic outlook, and funds poured into safe-haven assets crazily.
Financial Union, February 27 (Editor Ma Lan)The Bitcoin market appears to have entered a bear market, and traders are rapidly withdrawing from the market, reflecting the intensity of panic.
As of press time, the price of Bitcoin fell to US$84570, a drop of about 4% in 24 hours, and a drop of 22.85% from its January high. According to CoinGlass data, Bitcoin prices fell by more than $12000 in three days, causing more than $1 billion in leveraged long positions to evaporate.
The sell-off was linked to a tariff threat from U.S. President Donald Trump, who on Wednesday announced he would impose a 25% tariff on the European Union, rattling markets. Driven by Nvidia’s behind-expectations earnings, the U.S. stock market closed flat on Wednesday, while the gold market fell 2.2% in two days. More investors poured into U.S. long-term debt to seek comfort.
Traders worry that many companies will be in trouble due to global tariff conflicts and U.S. restrictions on technology exports overseas, thereby dispelling the market’s bullish enthusiasm built up by the development of artificial intelligence.
Compared with the more traditional safe-haven asset, gold, Bitcoin’s volatility may be more deeply rooted than its safe-haven properties, making it easier to become a test market for selling in the current trading stage.
According to data from the SoValue platform, on February 25, the cumulative net outflow of Bitcoin ETF in the United States was US$1.14 billion, setting a historical record. In the past six days, Bitcoin ETF has continued to have a net outflow of funds, with a total size reaching US$2.24 billion, which is also the longest outflow since June last year.
Geoff Kendrick, global head of digital asset research at Standard Chartered Bank, is concerned that despite institutional capital flows over the past 12 months, digital assets are still mainly driven by retail money. Ordinary investors have weak financial strength, or do not have enough funds to make up for losses.
He further warned that such losses are usually very large and there is no possibility of improvement. He also believes that there will be a larger decline after that.
