Bitcoin drops below $90K as the market awaits the next catalyst. Bitcoin has slipped beneath the key $90,000 level, dragged down by broader market weakness as investors search for the next major driver of crypto momentum.

The leading cryptocurrency fell 6% to $88,333.09, according to Coin Metrics, after touching an intraday low of $85,899.99—its weakest point since November. The latest downturn leaves Bitcoin nearly 20% below its all-time high, which was reached on President Donald Trump’s inauguration day.

Equities Pressure and Lack of Catalysts Weigh on Bitcoin

Steven Lubka, head of private clients and family offices at Swan Bitcoin, pointed to the recent struggles in the stock market as a major influence on Bitcoin’s decline.

“Equities have faced a few difficult sessions over the last week, with top-performing stocks down many times the index, as markets grapple with increased uncertainty under the new administration. This pressure has spilled over into bitcoin and crypto markets.”

“Ultimately, the lack of visible short-term catalysts and pressure from equities creates an environment for profit-taking and pressure from shorts”.

The S&P 500 extended its losing streak to four days on Tuesday as traders weighed economic growth concerns and global trade uncertainty.

Liquidations and Profit-Taking Accelerate the Drop

Bitcoin’s decline triggered a cascade of liquidations, forcing leveraged traders to sell their holdings at market prices to cover their debts. In the past 24 hours alone, centralized exchanges have recorded $697.6 million in long liquidations, according to CoinGlass.

At the start of the year, Bitcoin was riding high on optimism surrounding Trump’s return to the White House and expectations of crypto-friendly policies. However, after the president issued an executive order on crypto in late January—welcomed by the industry but lacking aggressive pro-Bitcoin measures—the market has been waiting for its next major catalyst.

Where Does Bitcoin Go From Here?

Analysts have been closely watching the $90,000 level, which has acted as a key support zone since November. A decisive breakdown could lead to further declines toward $80,000 or even the $70,000-$75,000 range.

“There is room for Bitcoin still to go back down towards the $70,000 to $75,000 area without doing anything to compromise the outlook,” said Joel Kruger, market strategist at LMAX Group. “And we suspect that there will be plenty of demand as we head down towards those levels.”

Lubka remains confident that Bitcoin will stabilize and resume its long-term uptrend by mid-March.

Altcoins Follow Bitcoin’s Lead

Other major cryptocurrencies mirrored Bitcoin’s drop. Ethereum (ETH) and Solana (SOL) fell 6% and 4%, respectively.

The meme coin sector suffered a steep 13% decline, according to CoinGecko, with the Trump meme coin slipping 8.7%. Libra, which recently gained attention after Argentine President Javier Milei mentioned it, plunged 19.7% in the past 24 hours.

As Bitcoin navigates this period of consolidation, all eyes remain on the next major catalyst that could reignite bullish momentum.

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