Bitcoin Drops to $86,100, Marking a 21% Decline from ATH

Bitcoin saw a sharp decline last night, dropping to $86,100—the lowest price recorded since November 2024. This marks a staggering 21% drop from its all-time high of $109,700, which was reached on January 20.

Despite the downturn, a key Bitcoin price indicator is signaling a “new generational buying opportunity,” while some analysts urge traders to take a broader view of the market and narrow their trading range.

Several market observers have pointed to concerns over U.S. stock performance, rising inflation, and a steep decline in consumer confidence this month as factors driving short-term investor caution.

Data from the Conference Board’s Consumer Confidence Index highlights growing pessimism among U.S. consumers, as the index fell to 98.3 in February—the largest monthly drop since August 2021.

Beyond mounting concerns over the U.S. labor market and inflation, President Trump’s upcoming tariffs on imports from Canada and Mexico have further fueled a risk-off sentiment among investors.

While more than $1.59 billion has been liquidated across the broader crypto market in the past 24 hours, some crypto advocates continue to encourage investors to take a long-term perspective and focus on the bigger picture.

On the daily chart, Bitcoin’s Relative Strength Index (RSI) has plunged below 27—a level not seen since the crash on August 5, 2024, when BTC plummeted to $49,000. Historically, deeply oversold RSI levels on longer time frames have been rare for Bitcoin and often present strong buying opportunities.

Despite Bitcoin’s weak short-term performance, Bitwise’s Head of Research for Europe remains optimistic, urging patience and pointing to Bitcoin’s post-halving performance, which suggests that the majority of its bull run is yet to unfold.

Bitcoin analyst Tuur Demeester also emphasized that beyond daily price fluctuations, institutional adoption continues to surge—a trend reflected in the growing BTC purchases by publicly traded companies.