Bitcoin's price took a tumble recently, briefly dipping below $94,000 on Sunday before recovering slightly to around $94,728. This decline has triggered a wave of speculation among crypto executives and analysts regarding the potential causes. Several factors are being considered, ranging from macroeconomic conditions to internal dynamics within the crypto market itself.
One major point of discussion revolves around outflows from Bitcoin ETFs. Some analysts suggest that significant outflows from these ETFs have contributed to the selling pressure on Bitcoin. Farside data indicated a total outflow of $129 million on February 18. These outflows may reflect a broader shift in investor sentiment or concerns about the near-term prospects for Bitcoin.
Another factor being considered is the activity of long-term Bitcoin holders, often referred to as "whales". There are speculations that some of these large holders may have been selling off portions of their holdings, adding to the downward pressure on the price. On-chain analysis reveals that Bitcoin has fallen below the realized prices of the 1–3 month and 3–6 month cohorts. These groups are likely to sell into any recovery attempt to exit at breakeven, creating resistance between $105K and $110K.
Escalating geopolitical tensions are also being mentioned as a potential contributing factor. Uncertainty in the global political landscape can often lead investors to reduce their exposure to risk assets, including cryptocurrencies. This risk-off behavior can trigger sell-offs and contribute to price declines.
Furthermore, technical analysis reveals that Bitcoin remains under both the 100-day and 200-day moving averages, which now act as resistance. The rejection from the 100-day MA at $110K accelerated the decline. Bitcoin's 50-day moving average dropped below the 200-day moving average on November 16, 2025, signaling potential bearish market conditions. The test of the $94K–$96K demand block is significant, as this region aligns with previous high-volume trading behavior. If the market fails to defend this area, the next major support is located around the $80K–$82K range.
Adding to the bearish outlook, the Bitcoin Taker-Buy-Sell-Ratio recently dipped to 0.92, suggesting bears are in control. Rising USDT dominance indicates a shift toward risk-off behavior, with investors moving to stablecoins to weather the storm.
Despite the recent slump, some analysts remain optimistic about Bitcoin's long-term prospects. Some believe the current downturn is temporary and won't affect long-term growth. Bitcoin's decreasing supply schedule makes it naturally resistant to inflation. Historically, halvings have preceded significant bull markets, with substantial price increases following each event.
However, caution is advised due to the increased risks during this volatile period. The recent price drop resulted in over 150,000 traders being liquidated in the derivatives market. Total liquidations exceeded $1.36 billion in 24 hours, with $1.205 billion from long positions.
The cryptocurrency market remains highly volatile, and investors should carefully consider all available information before making any decisions.
