Bitcoin’s price fell to $86,099 on February 26th, wiping out almost $1.06 billion from crypto’s market cap and sending ripples across the industry. According to Coinglass tracking, around 230,000 positions have been liquidated for the day.
As a sign of bearish sentiment, the digital asset’s open interest has dipped to 5%, reflecting deleveraging among investors and holders. On-chain data also suggests that exchange inflows surged to 14.2%, potentially suggesting panic selling among holders. Furthermore, funding rates are now in negative territory, indicating investors’ sentiments have shifted.
Massive Losses For Holders As BTC Tests $86K
As the world’s top digital asset, Bitcoin’s adverse price action caused plenty of ripples in the industry. With its price testing below $90k, thousands of positions were liquidated, and strong withdrawals from spot Bitcoin ETF funds were recorded. According to multiple reports, the five-day outflow for ETFs amounted to $1.1 billion, with $516 million lost on February 24th.
In a Twitter/X post, InTheBlock noted that around 12% of all BTC addresses are in the red. The post added that it’s now the highest unrealized loss percentage for Bitcoin since October 2024.
With Bitcoin briefly dropping below $90k, roughly 12% of all Bitcoin addresses are holding at a loss.
🔴This is the highest unrealized loss percentage since October 2024 pic.twitter.com/pngLz4G4wc
— IntoTheBlock (@intotheblock) February 25, 2025
Crypto-Related Stocks Fall
Aside from individual holders, crypto-related stocks suffered from Bitcoin’s recent drop. Michael Saylor’s Strategy is one of the biggest victims, with its stock price dropping 11% in the past 24 hours. The company’s stock has been declining since its peak in November and has now fallen 55% from its high.
Strategy boasts a portfolio worth over $43 billion, including 499,096 Bitcoin. With Bitcoin’s price falling, many crypto observers speculate where Strategy will sell some of its assets. However, some experts have shot down this idea, saying it’s doubtful that a company will fully commit to crypto.
Other crypto-related stocks also tumbled, with Robinhood (HOOD) dipping by 8%, Coinbase (COIN) suffering a 6.4% decline, and Marathon Digital (MARA) and Bitcoin miners Bitdeer (BTDR) dropping 9% and 29% respectively.
Traditional Stocks Also Suffered
Bitcoin’s underperformance was also felt in the broader market, with declines in the traditional financial markets. The Nasdaq Composite dropped by 2.8%, and the S&P 500 surrendered 2.1% of its market cap. Observers also noted the sudden strength of the US Dollar Index, suggesting that many investors are looking for “safety havens” for their investments.
On-chain data also indicates a recent surge in crypto whale activities. Bitcoin whales have sold over $1.2 billion worth of digital assets.
According to analysts, Bitcoin’s decline is caused by macroeconomic conditions. The market is still reeling from US President Donald Trump’s tariff announcement, and geopolitical tensions between China and the United States are pushing some investors to rethink their long-term plans.
Featured image from Gemini Imagen, chart from TradingView
Christian Encila
They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.
Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).
Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!
So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).
Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.
Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.
Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.
Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.
So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.
Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
