Why is Bitcoin price down today?

Bitcoin’s (BTC) price has dropped 7.40% in the last 24 hours to reach around $89,500 on Feb. 25, marking its lowest level since November 2024.

Top catalysts that have driven the cryptocurrency’s prices lower today include:

• US President Donald Trump’s renewed tariff threats.

• Massive crypto market liquidations.

• Persistent exchange-traded fund (ETF) outflows.

• Bearish technical signals.

Bitcoin tumbles on Trump’s tariff war escalation

A key contributor to Bitcoin’s underperformance today is President Trump’s re-escalation of tariff threats.

What to know:

• On Feb. 24, Trump announced that sweeping tariffs on Canada and Mexico would take effect next week, ending a temporary pause.

• The move follows his Feb. 1 executive order imposing 25% tariffs on Mexican and Canadian goods, plus an additional 10% duty on Canadian energy.

• These tariffs were initially delayed due to diplomatic talks with both nations.

• Gold has gained 12% in 2025 as investors seek safe-haven assets.

• Bitcoin, which mostly moves in tandem with risk assets, is falling alongside the global stock market.

• Federal Reserve’s rate pause outlook is furthering the BTC price decline.

• The decline across riskier assets mirrors the Feb. 3 sell-off when Trump first threatened tariffs on Canada, Mexico, and China.

Bitcoin liquidations cross $500 million in a day

A wave of crypto market liquidations has worsened Bitcoin’s price decline today.

What to know:

• Bitcoin Futures witnessed $516.93 million worth of liquidations in the past 24 hours, the highest since December 2024.

• Out of those, around $496.20 million were long positions.

• Short liquidations remained low at $20.73 million.

• When long positions are liquidated, traders’ positions are automatically sold by exchanges to cover losses, increasing sell-side pressure.

• Similar liquidation trends were observed on Feb. 3, when Bitcoin dropped due to Trump’s tariffs and leverage washouts.

Persistent ETF outflows boost BTC sell pressure

Bitcoin’s price decline follows persistent outflows from its US-based spot ETFs.

Key takeaways:

• Bitcoin ETFs have seen $1.77 billion in outflows since Feb. 17, 2025.

• Feb. 24 marked the largest single-day outflow at $516.4 million, coinciding with Trump’s renewed tariff threats.

• Institutional investors are evidently reducing exposure due to macroeconomic uncertainty.

• Large ETF redemptions forced providers to sell Bitcoin, which amplifies the selling pressure, including today.

Bitcoin breakdown risks decline toward $77,500

Bitcoin’s decline today is part of its prevailing double-top bearish reversal pattern.

Key points:

• A double top forms when an asset hits two similar peaks but fails to break higher.

• The pattern resolves when the price breaks below its common neckline support with a rise in trading volumes.

• As a rule, a double top’s downside target is measured by subtracting the neckline level from the pattern’s maximum height, i.e., the maximum distance between the neckline and the peak.

• As of Feb. 25, BTC’s price had entered the breakdown stage of its double-top pattern.

Related: Bitcoin could be headed for $70K ‘goblin town’ on ETF exodus: Hayes

• Applying the technical rule brings its downside target to approximately $77,500, down 13% from the current price levels, by March.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.