Panic Sell? Bitcoin’s $86K Fall Wipes Out $1 Billion In Trades

Bitcoin’s price fell to $86,099 on February 26th, resulting in a loss of almost $1.06 billion from the crypto market cap. This significant drop led to the liquidation of around 230,000 positions for the day, as reported by Coinglass.

The bearish sentiment was evident as Bitcoin’s open interest decreased by 5%, indicating deleveraging among investors and holders. On-chain data also showed a surge in exchange inflows by 14.2%, possibly signaling panic selling among holders. Furthermore, funding rates turned negative, reflecting a shift in investors’ sentiments.

The adverse price action of Bitcoin had a ripple effect across the industry, with thousands of positions being liquidated and substantial withdrawals from spot Bitcoin ETF funds recorded. Reports indicated a five-day outflow of $1.1 billion from ETFs, with a loss of $516 million on February 24th.

Crypto-related stocks also suffered from Bitcoin’s drop, with Michael Saylor’s Strategy stock price declining by 11% in the past 24 hours. Strategy, holding a portfolio worth over $43 billion, including 499,096 Bitcoin, has fallen 55% from its peak in November.

Other crypto-related stocks such as Robinhood, Coinbase, Marathon Digital, and Bitdeer also experienced declines ranging from 6.4% to 29%. The broader market was affected as well, with the Nasdaq Composite and the S&P 500 losing 2.8% and 2.1% of their market cap, respectively.

Analysts attribute Bitcoin’s decline to macroeconomic conditions, including US President Donald Trump’s tariff announcement and geopolitical tensions between China and the United States. The sudden strength of the US Dollar Index suggests investors seeking “safety havens” for their investments.

Overall, the recent drop in Bitcoin’s price has had far-reaching effects on the crypto industry, traditional financial markets, and investor sentiments.