**Bitcoins Fall Causes Crypto Market to Lose $1 Billion**
Bitcoin’s recent steep decline to $86,099 has set off a huge wave of liquidations in the crypto market, wiping out a massive $1.06 billion. Long positions suffered the most, making up $873 million in losses.
An increase in exchange inflows, rising 14.2%, suggests a possible panic sell-off, while a 5% decrease in open interest indicates widespread decrease in leverage. Information from Coinglass shows that more than 230,000 traders were liquidated in just the last day. Adding to the negativity, funding rates have turned negative, showing a change in investor mood.
This large sell-off happens at the same time as big outflows from US spot Bitcoin ETFs. On February 24th alone, these ETFs lost $516 million, bringing the total outflow to a large $1.1 billion over five days.
Crypto-related stocks are also suffering, with Coinbase (COIN) falling 6.4%, Robinhood (HOOD) dropping 8%, and Bitcoin miners Bitdeer (BTDR) and Marathon Digital (MARA) falling sharply by 29% and 9%, respectively.
On-chain information from IntoTheBlock shows that 12% of Bitcoin addresses are now underwater, marking the highest percentage of unrealized losses since October 2024. With many investors who purchased near the $108,000 all-time high now losing money, more selling pressure is expected.
Whale activity is also increasing, with Bitcoin whales selling off over $1.2 billion in the past week. The Bitcoin sell-off is mainly due to worsening macroeconomic conditions.
Global markets are struggling because of Donald Trump’s proposed tariffs on Canada and Mexico, causing worries about inflation and economic slowdown. At the same time, geopolitical tensions between the US and China, especially over semiconductor trade restrictions, are reducing risk appetite.
Traditional financial markets are also down, with the S\&P 500 decreasing 2.1% and the Nasdaq Composite dropping 2.8%.
Ordinarily, an escalating US currency index indicates heightened danger aversion, which frequently exerts stress on chancy holdings such as Bitcoin.
The value of Intel shares is growing as Chi Liwu assumes leadership of the major chip manufacturer
Dealers are intently observing the $90,000 mark as a potential rebound location, although elements like extreme marketplace impact, sustained financial doubt, and diminishing marketplace self-assurance imply improved instability beforehand. At present, Bitcoin’s principal assistance stage abides at $88,000, and a breach beneath this stage could spark a fresh surge of vending.
