Why Bitcoin is Falling Today: BTC Crash Reasons & What’s Next?

Why Bitcoin is Falling Today: What’s Behind BTC Crash & Will it Rise?

Bitcoin in Trouble: Why Bitcoin Price is Falling & What’s Next?

Bitcoin, the king of cryptocurrencies, is facing a rough patch currently. Despite bold moves from big players like MicroStrategy, the price is tumbling, leaving investors scratching their heads, wondering why Bitcoin is falling. 

Is this just another dip before a big comeback, or are we staring at a deeper crash? Let’s break down why Bitcoin is going down and whether there’s hope on the horizon.

Bitcoin Price Today at a Glance

Right now, Bitcoin price today is trading at around $91,917.43, marking a 3.74% drop in the last 24 hours. Its market cap sits at $1.82 trillion, while the 24-hour trading volume has skyrocketed by 134.12% to $51.73 billion. 

This surge in trading shows growing volatility as panic and speculation flood the market, making many wonder why Bitcoin is falling today.

What’s Dragging Bitcoin Down? – Top Reasons Behind the Fall

1. Big Buys, No Price Pump – What’s Going On?

MicroStrategy made headlines after buying 20,356 BTC for nearly $1.99 billion at an average price of $97,514 per Bitcoin. Their total stash? A jaw-dropping 499,096 BTC worth over $33.1 billion. But here’s the kicker – despite this massive purchase, BTC price barely budged.

This has sparked whispers of market manipulation. How can someone buy billions in Bitcoin without moving the needle? 

Experts suggest that such huge buys happen through over-the-counter (OTC) trades, which keep transactions off public exchanges and prevent sudden price spikes.

MicroStrategy’s Michael Saylor remains upbeat, saying, “Every dip is a chance to own a bigger slice of monetary freedom.” But his optimism isn’t enough to hide the market’s current weakness, leaving many to ask why BTC is crashing.

2. Bitcoin ETFs Bleeding Out

Bitcoin ETFs, once seen as a bullish force propelling the crypto market upward, are now contributing to its decline. As of February 24, daily total net outflows reached a staggering $357.81 million, signaling a sharp reversal in investor sentiment. 

Major players like Fidelity’s FBTC and Grayscale’s GBTC, previously among the largest accumulators, are now witnessing significant sell-offs. 

This shift has added downward pressure on Bitcoin and other major cryptocurrencies, exacerbating market gloom and raising concerns about Bitcoin fall.

3. Crypto Hacks & Scams Fueling Panic

Crypto’s dark side is once again in the spotlight.

• Bybit, a major exchange, got hit by a massive Ethereum hack, losing $1.5 billion, or 70% of its ETH holdings.

• Infini was exploited for $49.5 million due to a smart contract vulnerability.

These hacks caused widespread fear, leading many to dump their crypto holdings, contributing to the ongoing Bitcoin crash.

And let’s not forget the meme coin disasters. Popular meme coins like Car Coin, Libra, and Melenia turned out to be classic pump-and-dump scams, wiping out a chunk of the $57.31 billion meme coin market cap. 

This chain reaction is pulling Bitcoin down with it as trust in the broader crypto market takes a hit, making investors wonder why Bitcoin is going down.

4. The Flight to Safety – Gold Shines Again

With all this chaos, investors are running back to traditional safe-haven assets like gold. Right now, the gold price is hovering near $2,939.43 per ounce, near an all time high. Many are starting to see Bitcoin more as digital credit rather than “digital gold,” shaking its reputation as a safe store of value and fueling concerns over whether Bitcoin will fall further.

5. Network Activity is Slowing Down

Another red flag? Bitcoin’s network is seeing less activity. Active Bitcoin addresses have dropped to 900,000, down from a peak of 1.2 million in 2021. This decline suggests fewer people are using or transacting Bitcoin, a bearish signal for the market’s health.

6. Bitcoin Liquidation Snapshot

In the past 24 hours, 285,503 traders were liquidated, with total losses reaching $887.08 million. The biggest single liquidation occurred on Bitmex's XBTUSD pair, worth $10 million. Bitcoin alone saw $3.20 million in liquidations, with 2,720 short positions wiped out.

Will Bitcoin Rise Again or Crash Further?

Bitcoin is standing at a crossroads. On one hand, heavy institutional buys hint at long-term faith. On the other, hacks, scams, ETF outflows, and falling network activity are strong bearish signals. Investors are left wondering will Bitcoin rise or fall today?

But if history has taught anything, it’s that Bitcoin loves a comeback and crypto analysts also suggest the same with bitcoin price prediction going around according to the current bitcoin value. Investors should keep an eye on network activity and ETF flows for signs of stabilization. Until then, buckle up – it’s going to be a bumpy ride in the world of Bitcoin price USD!

Final Thoughts

The crypto market is really tense right now. Fear is taking over, with the fear index at a low 25, showing that people are nervous. 

But here’s the catch — Bitcoin’s trading volume is going up. This could mean more people are buying in, hoping for a rebound. Is this the right time to buy the dip? Or is Bitcoin about to drop even further? No one really knows. 

The market is unpredictable, and anything can happen. It’s a risky game, but sometimes that’s where the biggest rewards come from.