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Friday, February 27, 2026

Bitcoin recorded its worst fall in the last 9 months: what are the causes

Bitcoin went through one of its most difficult days, registering its biggest drop in the last nine months.On Thursday, January 30, 2026, the price of the world’s main cryptocurrency fell to the range of $81,600.

A day later, the price remained close to $83,000, although volatility and a feeling of uncertainty persist in the market.

Bitcoin’s sharp correction was accompanied by a wave of widespread selling in the cryptocurrency market.

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Bitcoin recorded its worst fall in the last 9 months: what are the causes
More than $1.68 billion in digital assets were liquidated during the day of greatest decline.(Reuters)

This massive liquidation process reflected a market overloaded with optimism that, by losing relevant technical references, was exposed to a rapid and deep adjustment.Furthermore, deleveraging in derivatives markets accelerated selling pressure, deepening the decline of Bitcoin and other alternative cryptocurrencies.

One of the most followed indicators to measure investor sentiment is Crypto Fear

Drastic falls in this index usually anticipate episodes of prolonged volatility and make sustained price recovery difficult without the presence of positive catalysts.

Bitcoin recorded its worst fall in the last 9 months: what are the causes
The Crypto Fear Index

The recent fall of Bitcoin reopened the debate among traders and analysts about the nature of this decline: while some see it as a deep but punctual correction, others warn about the possibility of an extended bearish cycle.

From a technical perspective, the drop in value below the ‘safe’ barrier of $84,000 altered long-term charts.The 200-week moving average, located around $57,000, has re-emerged as a possible structural reference for Bitcoin’s value if the negative trend persists.

In parallel, the evolution of traditional markets had an additional impact on cryptocurrencies.The technical deterioration on Wall Street and widespread risk aversion in financial markets resulted in a greater correlation between Bitcoin and traditional assets, such as gold and stocks, especially during times of macroeconomic and geopolitical tension.

Bitcoin recorded its worst fall in the last 9 months: what are the causes
Technical factors, the situation on Wall Street and political tensions increased the selling pressure on Bitcoin and other cryptocurrencies.(Reuters)

Added to this are political factors, such as the attention on President Donald Trump’s possible nomination of Kevin Warsh to the Federal Reserve, which adds an additional dose of uncertainty to the outlook.

Despite the bearish scenario, some analysts consider that Bitcoin could be entering an undervaluation zone, which opens the door to eventual technical rebounds if more favorable conditions appear.However, the characteristic volatility of the crypto market and the lack of clear signs of recovery invite caution.

The immediate future of Bitcoin will depend both on the evolution of international markets and on the asset’s ability to find new stable values and regain the trust of investors.

Aiman Sohail
Aiman Sohail
Dr. Aiman Sohail is a seasoned journalist and geopolitical analyst with over a decade of experience covering global affairs, politics, and current events. She earned her Bachelor’s degree in International Relations from Quaid-i-Azam University, Islamabad, followed by a Master’s in Political Science from Lahore University of Management Sciences (LUMS). Driven by a passion for understanding global dynamics, she completed her PhD in International Security Studies at The University of London, focusing on South Asian geopolitics and conflict resolution. Sara began her career as a correspondent for The Express Tribune, covering domestic politics and economic developments. She later joined Geo News as a senior reporter, specializing in geopolitical affairs, foreign policy, and conflict analysis. Over the years, her articles have been featured in major national and international publications, including Dawn, The Diplomat, and Al Jazeera English, earning her recognition for insightful analysis and in-depth reporting. In addition to journalism, Sara frequently contributes to academic forums, think tanks, and panel discussions on international relations. Her expertise lies in South Asian security, diplomatic policy, and global political trends, making her one of Pakistan’s leading voices in contemporary geopolitics.

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