Bitcoin Price Drops to $86K, Resulting in $1 Billion Market Loss

Bitcoin's price dropped to $86,099 on February 26th, resulting in a loss of approximately $1.06 billion from the crypto market cap. Around 230,000 positions were liquidated that day, indicating bearish sentiment.

Key points include:

Open interest for Bitcoin fell to 5%, suggesting deleveraging among investors.
Exchange inflows increased to 14.2%, indicating potential panic selling.
Funding rates turned negative, reflecting a shift in investor sentiment.
ETF outflows reached $1.1 billion over five days, with $516 million lost on February 24th.
12% of all Bitcoin addresses are currently at a loss, the highest percentage since October 2024.

Impact on Crypto-Related Stocks

Crypto-related stocks also experienced declines due to Bitcoin's downturn:

Strategy's stock price fell 11%, down 55% since its November peak.
Robinhood (HOOD) decreased by 8%, Coinbase (COIN) by 6.4%, Marathon Digital (MARA) by 9%, and Bitdeer (BTDR) by 29%.

Broader Market Effects

The decline in Bitcoin affected traditional markets as well:

Nasdaq Composite dropped by 2.8%.
S&P 500 decreased by 2.1%.
US Dollar Index showed strength as investors sought safer assets.
Bitcoin whales sold over $1.2 billion worth of digital assets recently.

Analysts attribute Bitcoin’s decline to macroeconomic factors, including US tariffs and geopolitical tensions between China and the US.