The sharp decline in Bitcoin to 86,099 people wiped out $1.06 billion across the crypto market, with long positions losing $873 million.
Coinglass' February 26th data shows that as many as 230,000 traders have been liquidated in the last 24 hours. Open profits have declined by 5%, indicating widespread deleveraging. Exchange inflows are up 14.2%, potentially indicating panic sales. Furthermore, funding rates changed negatively, reflecting changes in investor attitudes.
Strong withdrawal from the US Spot Bitcoin (BTC) ETF was accompanied by a massive sale. The five-day spill totaled $1.1 billion, with the ETF losing $516 million on February 24 alone.
Crypto-related stocks have also been affected, with Coinbase (coin) down 6.4%, Robinhood (hood) down 8%, while Bitcoin Minor Bitdia (BTDR) and Marathon Digital (MARA) down 29%, respectively It has decreased by %.
According to Intotheblock's on-chain data, 12% of all Bitcoin addresses are currently owing losses. This is the highest percentage of unrealized losses since October 2024. Underwater from $108,000, the highest ever.
The activities of whales are also accelerating. Throughout the previous week, Bitcoin Zilla offloaded more than $1.2 billion. The decline of Bitcoin has been caused primarily by exacerbating macroeconomic conditions.
The global markets proposed by tariffs in Canada and Mexico proposed by Donald Trump raise concerns about inflation and economic stagnation. Meanwhile, geopolitical tensions between the US and China, particularly over semiconductor trade restrictions, have undermined risk appetite.
Additionally, traditional financial markets have lost 2.8% for NASDAQ composites and 2.1% for the S&P 500. Flights to safety, which usually put pressure on high-risk assets like Bitcoin, are shown by strengthening the US Dollar Index.
The $88,000 support for Bitcoin remains important as a lower decline could lead to yet another liquidation. Excessive leverage, sustained economic uncertainty, and declining market confidence indicate greater volatility in the future, but traders are focusing on $90,000 as a possible recovery level.
