Bitcoin has plunged below the $90,000 mark, hitting a three-month low as market-wide selling pressure takes hold. The flagship cryptocurrency dropped 7% to $86,915, briefly touching $86,128—its lowest level since November.

The decline follows weakness in equity markets, where top-performing stocks have seen sharp pullbacks. Analysts cite increased macroeconomic uncertainty and profit-taking as key factors driving Bitcoin’s downturn.

Market Uncertainty Fuels Crypto Liquidations

With equities struggling, the ripple effect has reached crypto markets, leading to a wave of liquidations. Over $614.5 million in long positions were wiped out in the past 24 hours, forcing traders to sell assets at market price.

Steven Lubka, head of private clients at Swan Bitcoin, noted that the absence of strong short-term catalysts has led to a “sell-the-fact” scenario, where traders exit positions in anticipation of further downside.

Trump’s Crypto Policies Yet to Boost Sentiment

Bitcoin’s early-year rally was fueled by optimism over the Trump administration’s pro-crypto stance. However, after Trump’s executive order on crypto in January—viewed as positive but less aggressive than expected—momentum has slowed.

While long-term confidence in Bitcoin remains, its near-term price action is dictated by macroeconomic factors, including concerns over inflation and economic slowdown.

Bitcoin’s Key Support Levels and Outlook

Bitcoin has been trading in a narrow range since November, with $90,000 acting as a key support level. Analysts warn that a meaningful break below this range could lead to a deeper decline toward $80,000 or even $70,000.

Despite the current weakness, experts believe Bitcoin will regain strength by mid-March. “There is room for Bitcoin to dip further without compromising its long-term outlook,” said Joel Kruger, strategist at LMAX Group.

Altcoins Take a Bigger Hit

The broader crypto market suffered even steeper losses. Ethereum (ETH) and Solana (SOL) fell 8%, while meme coins tumbled 15.5% in the last 24 hours. Notably, Libra, which recently gained attention after Argentine President Javier Milei mentioned it, plummeted 23%.

As Bitcoin navigates this correction, traders are watching key support levels and macroeconomic trends for signs of the next major move.