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Date: 2025-02-26 02:50:03
The recent plunge of Bitcoin to 86,099 has erased $1.06 billion from the entire crypto market, with long positions bearing the brunt of $873 million in losses.
Based on data from Coinglass as of Feb. 26, approximately 230,000 traders have been liquidated within the past 24 hours. Open interest has seen a 5% decrease, suggesting extensive deleveraging. Exchange inflows have surged by 14.2%, potentially hinting at more panic selling. Furthermore, funding rates have turned negative, indicating a shift in investors' sentiment.
Aggressive withdrawals from U.S. spot Bitcoin (BTC) ETFs coincided with the massive sell-off. The five-day outflows amounted to $1.1 billion, with ETFs shedding $516 million on Feb. 24 alone.
Crypto-related stocks took a hit as well, with Coinbase (COIN) sliding 6.4%, Robinhood (HOOD) dropping 8%, and Bitcoin miners Bitdeer (BTDR) and Marathon Digital (MARA) plummeting 29% and 9%, respectively.
IntoTheBlock's on-chain data revealed that 12% of all Bitcoin addresses are currently holding at a loss, which is the highest percentage of unrealized losses since October 2024. This situation increases the likelihood of further sell-offs as many investors who bought near the all-time highs of $108,000 are now underwater.
With Bitcoin briefly dipping below $90k, around 12% of all Bitcoin addresses are holding at a loss.
🔴This marks the highest unrealized loss percentage since October 2024
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Activity among large Bitcoin holders, or "whales," has also intensified. During the previous week, Bitcoin whales have sold off more than $1.2 billion. The downturn of Bitcoin has largely been sparked by deteriorating macroeconomic conditions.
Global markets have been rattled by Donald Trump's proposed tariffs on Canada and Mexico, which have exacerbated fears about inflation and economic stagnation. Additionally, geopolitical tensions between the United States and China, particularly over trade restrictions on semiconductors, have weakened risk appetite.
Traditional financial markets have experienced declines as well, with the Nasdaq Composite tumbling 2.8% and the S&P 500 losing 2.1%. The strengthening of the U.S. Dollar Index indicates a flight to safety, which usually places pressure on riskier assets like Bitcoin.
The $88,000 support level for Bitcoin remains critical, as a fall below it could lead to another wave of liquidations. Despite excessive leverage, ongoing economic uncertainty, and waning market confidence pointing towards more volatility in the future, traders are eyeing $90,000 as a potential recovery level.