Bitcoin took a nosedive to $86,099, and it wasn’t pretty—$1.06 billion got wiped out across the crypto market in a flash. The carnage hit long positions hardest, with traders betting on a rise losing a brutal $873 million.
The sell-off didn’t stop with Bitcoin itself. U.S. spot Bitcoin ETFs saw massive withdrawals, with $1.1 billion yanked out over five days—$516 million of that on February 24 alone. Crypto stocks felt the heat too: Coinbase (COIN) dropped 6.4%, Robinhood (HOOD) slid 8%, and Bitcoin miners got hammered—Bitdeer (BTDR) cratered 29% while Marathon Digital (MARA) fell 9%.
According to February 26 data from Coinglass, the past 24 hours have been a bloodbath, liquidating 230,000 traders. Open interest—the money still in play—shrank by 5%, a clear sign folks are pulling back and shedding leverage. Meanwhile, exchange inflows spiked 14.2%, hinting at panic selling, and funding rates flipped negative, showing a sour shift in investor mood.
The sell-off didn’t stop with Bitcoin itself. U.S. spot Bitcoin ETFs saw massive withdrawals, with $1.1 billion yanked out over five days—$516 million of that on February 24 alone. Crypto stocks felt the heat too: Coinbase (COIN) dropped 6.4%, Robinhood (HOOD) slid 8%, and Bitcoin miners got hammered—Bitdeer (BTDR) cratered 29% while Marathon Digital (MARA) fell 9%.
IntoTheBlock’s on-chain data paints a grim picture: 12% of Bitcoin addresses are now underwater, the highest chunk of unrealized losses since October 2024. A lot of these folks bought near Bitcoin’s peak of $108,000, and with prices tanking, the risk of more sell-offs is climbing. Whales aren’t helping either—they’ve unloaded over $1.2 billion worth of Bitcoin in the past week alone.
What’s driving this mess? The economy’s looking shakier by the day. Donald Trump’s proposed tariffs on Canada and Mexico have markets fretting about inflation and stagnation. Toss in escalating U.S.-China tensions over semiconductor trade restrictions, and risk appetite’s taking a hit.
Traditional markets are reeling too—the Nasdaq Composite plunged 2.8%, the S&P 500 shed 2.1%, and the U.S. Dollar Index is flexing, signaling a dash to safer bets that’s leaving riskier assets like Bitcoin in the dust.
Bitcoin’s clinging to a key $88,000 support level—if it cracks, expect another wave of liquidations. Traders are watching $90,000 as a potential bounce-back point, but with too much leverage, shaky economic vibes, and confidence running thin, volatility’s probably sticking around for a while.
