Bitcoin Records Largest Three-Day Price Slide Since FTX Collapse
Bitcoin (BTC) has experienced its steepest three-day decline since the FTX collapse, dropping 25% from January's all-time high. Contributing factors include:
- The largest hack in crypto history affecting investor sentiment
- A memecoin frenzy draining liquidity from the market
Historical data indicates that bull-market corrections can see BTC drop by up to 35%. Currently, it is trading near its 200-day moving average of approximately $81,800. Short-term holders are selling at increased levels, indicating potential market capitulation.
BlackRock's IBIT ETF faced record outflows, but some companies reported positive developments. Core Scientific (CORZ) announced a significant expansion, and MARA Holdings (MARA) posted strong earnings.
Upcoming Events
Crypto:
- Feb. 27: Sonic SVM mainnet launch
- March 1: Arkham Exchange spot trading goes live
- March 5: Testing of Ethereum’s Pectra upgrade starts
Macro:
- Feb. 27: Brazil and Mexico release January employment data
- Feb. 27: U.S. GDP second estimate released
Market Movements
Current prices:
- BTC: $86,735.19 (up 3% in 24 hours)
- ETH: $2,378.49 (up 1.98% in 24 hours)
BTC Dominance is at 60.77%, with an ongoing trend of negative funding rates in derivatives markets. Open interest for BTC and ETH options indicates downside concerns extending into March.
Technical Analysis
BTC's recent breakdown suggests former resistance at $74,000 may now serve as support, with no significant support levels until then.
Token Stats
Daily net outflows for BTC and ETH ETFs indicate increased selling pressure:
- BTC daily flow: -$754.6 million
- ETH daily flow: -$94.3 million
Overall, traders should monitor these developments closely as market conditions evolve.