The sell-off is primarily driven by a "risk-off" mood in global markets rather than a single crypto-specific event:
Macroeconomic Pressure: Global tech stock losses and hawkish comments from US officials have increased investor caution. The appointment of a hawkish Fed Chair has raised expectations for further balance sheet reductions.
Massive Liquidations: Over $2.56 billion in leveraged long positions have been liquidated in recent days, accelerating the downward momentum.
ETF Outflows: U.S.-listed spot Bitcoin ETFs recorded significant net outflows, with $545 million withdrawn on Wednesday alone.
Geopolitical and Trade Risks: Rising tensions (e.g., U.S.–Iran) and renewed global trade risks have pushed capital toward safer assets like the U.S. dollar.
Market Sentiment & Technical Levels
Fear Index: The Fear & Greed Index is currently at 14, indicating "Extreme Fear" among market participants.
Support Zones: Analysts are closely watching the $68,000 and $60,000 levels as potential "dip-buying" zones. A failure to hold $69,000 could lead to further testing of the $38,000–$50,000 range in a worst-case scenario.
Bullish Reclaim: To reassert a bullish outlook, Bitcoin needs to reclaim the $80,000 and $95,000 levels.
Investor Insights
While short-term volatility is high, some analysts believe this correction is "clearing out excess leverage". Historically, February has seen average monthly gains of 13.4%, leading some to view this as a "shakeout" before a potential recovery toward $90,000 later in the month. However, the current technical structure remains bearish until major moving averages are reclaimed.