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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Drops Below $90K as Macro Headwinds Bite
Despite altcoins finding much-needed support on February 25, bitcoin (BTC) faced renewed selling pressure, dropping below $90k for the first time since January 13.
BTC has failed to reclaim the crucial $100k level for eighteen consecutive sessions and is down 19% from its January 20 record high of $109,312.
Several macro factors have impacted BTC price trends, including:
US SBR Developments and BTC-Spot ETF Flows
Recently, the US States of Montana and South Dakota voted against state-level SBRs, dampening hopes for a national SBR. Speculation about a potential national SBR drove BTC to its all-time high of $109,312.
In late 2024, Senator Cynthia Lummis introduced the Bitcoin Act, proposing that the US government acquire one million BTC over five years, with a mandatory 20-year holding period. Such a move would significantly tilt the supply-demand balance in BTC’s favor. However, the lack of progress has impacted investor sentiment and contributed to net outflows from BTC-spot ETFs.
On February 25, market intelligence firm Santiment shared a chart on sentiment toward BTC, ETH, ETH, and XRP, stating:
“With crypto’s slide and Bitcoin’s fall down to $86K today, the community’s sentiment levels are essentially at rock-bottom. Historically, when notably high FUD and trader capitulation begins to trickle in at these levels, the cryptocurrency bottom is near.”
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