Bitcoin tumbled to $86,099 on February 26th. The drop wiped approximately $1.06 billion from cryptocurrency's total market capitalisation. According to data from Coinglass, nearly 230,000 trading positions were liquidated within a 24-hour period, highlighting the severity of the market correction.
Market indicators paint a concerning picture for the world's largest cryptocurrency. Open interest in Bitcoin derivatives has contracted by 5 percent. This suggests significant deleveraging among investors.
On-chain analytics reveal exchange inflows surged 14.2 percent, potentially indicating panic selling by holders seeking to exit positions. Funding rates have turned negative, signaling a marked shift in investor sentiment toward bearish expectations.
The price action below the $90,000 threshold triggered substantial consequences across the cryptocurrency ecosystem. Spot Bitcoin ETF funds recorded five consecutive days of outflows totaling $1.1 billion. February 24th alone saw withdrawals of $516 million from these investment vehicles, according to multiple industry reports.
"With Bitcoin briefly dropping below $90k, roughly 12% of all Bitcoin addresses are holding at a loss," noted blockchain analytics firm IntoTheBlock in a social media post. "This is the highest unrealized loss percentage since October 2024," the firm added, underscoring the market's current fragility.
Publicly-traded companies with exposure to cryptocurrency markets experienced sharp declines. Strategy, led by Michael Saylor, saw its share price plummet 11 percent in the past 24 hours. The company's stock has now fallen 55 percent from its November peak. Strategy holds a substantial 499,096 Bitcoin in its portfolio, valued at over $43 billion. Market speculation regarding potential Bitcoin sales by the company has emerged. Industry experts, however, have dismissed these concerns, noting it would contradict the firm's cryptocurrency-focused strategy.
Other crypto-adjacent equities suffered similar fates. Robinhood (HOOD) shares declined 8 percent. Coinbase (COIN) fell 6.4 percent. Bitcoin mining operations were particularly hard hit, with Marathon Digital (MARA) dropping 9 percent and Bitdeer (BTDR) plunging a staggering 29 percent within the trading session.
The impact extended beyond cryptocurrency markets. Traditional equity indices recorded significant losses, with the technology-heavy Nasdaq Composite falling 2.8 percent. The broader S&P 500 index surrendered 2.1 percent. Analysts noted strengthening in the US Dollar Index, suggesting investors are rotating capital into perceived safe-haven assets amid increased market volatility.
On-chain metrics reveal substantial selling pressure from large holders. Bitcoin "whales" have offloaded over $1.2 billion worth of digital assets in recent days. Analysis indicates broader macroeconomic factors are driving Bitcoin's decline. Markets continue processing US President Donald Trump's recent tariff announcements. Escalating geopolitical tensions between China and the United States have prompted investors to reassess long-term investment strategies in risk assets.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.