Panic Sell? Bitcoin’s $88K Fall Wipes Out $1 Billion in Trades
On February 26, the price of Bitcoin fell to $86,099, pulling nearly $1.06 billion from the cryptocurrency’s market capitalization and rippling across the industry. according to Small shop Follow-up, about 230,000 positions have been liquidated on the same day.
Related Readings
As a sign of bearish sentiment, open interest in digital assets fell to 5%, reflecting deleveraging between investors and holders. The data on the chain also showed that exchange inflows soared to 14.2%, which could indicate panic sales among holders. In addition, the current funding rate is now in a negative state, indicating that investor sentiment has changed.
BTC test $86K, huge losses for holders
As the world’s top digital asset, the disadvantages of Bitcoin Price action There have been a lot of ripples in the industry. As its price tests are below $90K, thousands of positions have been liquidated and a massive exit of spot Bitcoin ETF funds were recorded. According to multiple reports, ETFs’ five-day outflows were $1.1 billion, and lost $516 million on February 24.
In the Twitter/x post, In block It is pointed out that about 12% of all BTC addresses are in red. The post added that it is the highest unrealized percentage of loss for Bitcoin since October 2024.
As Bitcoin briefly dropped below $90k, about 12% of all Bitcoin addresses lost.
🔴This is the highest unrealized percentage of losses since October 2024 pic.twitter.com/pnglz4g4wc
– intotheblock (@intotheblock) February 25, 2025
Crypto-related stocks fall
In addition to individual holders, crypto-related stocks have also suffered losses from Bitcoin’s recent decline. Michael Saylor’s strategy One of the biggest victims, its share price has fallen 11% in the past 24 hours. The company’s stock has been declining since its November peak and has now fallen 55% from its highs.
The strategy has a portfolio worth more than $43 billion, including 499,096 bitcoins. As Bitcoin’s price drops, many crypto observers speculate where the strategy will sell some of its assets. However, some experts have rejected the idea, saying the company will be entirely committed to cryptocurrencies, which is doubtful.
Other crypto-related stocks also fell, with Hood falling 8%, Coinbase falling 6.4%, Marathon Digital (Mara) and Bitcoin miner BITDER (BTDR) falling 9% and 29%.
Traditional stocks suffer too
Bitcoin’s underperformance is also felt in the broader market, the decline in traditional financial markets. Nasdaq Composites fell 2.8%, with the S&P 500 accounting for 2.1% of its market cap. Observers also pointed out that the sudden strength of the U.S. dollar index shows that many investors are looking for a “safe haven” for their investments.
On-chain data also suggests a recent surge in crypto whale activity. Bitcoin Whale has sold over $1.2 billion worth of digital assets.
Related Readings
According to analysts, the decline in Bitcoin is caused by macroeconomic conditions. The market is still in the US President Donald Trump’s Tariff AnnouncementGeopolitical tensions between China and the United States are prompting some investors to reconsider their long-term plans.
Featured images by Gemini Imagen, charts by TradingView
