Bitfinex Analysts Label Bitcoin’s Current Correction as ‘Critical’

Experts from the Bitfinex exchange stated that the drop in Bitcoin’s price below $91,000 marks a “critical moment” amid a three-month consolidation. On February 25, the price of the digital asset briefly fell to $88,200.

At the time of writing, Bitcoin is trading at $89,116, down 2.68% over the past 24 hours.

Bitfinex analysts note that the correlation between the leading cryptocurrency and traditional financial markets is strengthening. Investor activity is being dampened by macroeconomic instability.

The stagnation in the US stock market is also exerting significant pressure on cryptocurrencies. Over the past five trading days, the S&P 500 index has fallen by 2.3%, while the Nasdaq has dropped by 4%.

Experts added that institutional demand for spot Bitcoin ETFs has also “significantly slowed.” Over the past week, such funds have recorded an outflow of $552 million.

MN Trading founder Michaël van de Poppe offered a more optimistic view on Bitcoin’s price movement:

“Perhaps the bottom is $83,000-87,000. The market is currently absorbing liquidity. Sentiment has shown an extreme decline, which could signal a reversal,” the expert believes.

Anyways, mentioned this yesterday, #Bitcoin needs to take all the liquidity.

That’s what we’re currently doing.

Ultimate bottom case? $83-87K.

Then we should be rotating upwards.

The current sentiment is extremely peaking to the downside, so that’s likely the case. pic.twitter.com/aSaN6xf9D1

— Michaël van de Poppe (@CryptoMichNL) February 25, 2025

On February 24, during a press conference with French President Emmanuel Macron, US President Donald Trump confirmed that the 25% tariffs on imports from Canada and Mexico “are being implemented on time and as scheduled.”

Following the news, the Fear and Greed Index dropped to 25 points, indicating “extreme fear.” This level is reminiscent of early September 2024.

As reported by CryptoQuant, a warning was issued about the risk of Bitcoin entering a bearish phase.