Bitcoin’s Descent to $86K Sparks $1.06 Billion in Market Liquidations

• The ongoing price slump of Bitcoin caused 230,000 traders to liquidate their positions resulting in $1.06 billion worth of losses at $86,099. 
• Total withdrawals from U.S. spot Bitcoin ETFs exceeded $1.1 billion throughout five trading days and Bitcoin ETFs saw their largest withdrawal of $516 million on February 24.
• The prices of crypto-related stocks Coinbase and Robinhood decrease rapidly due to the Bitcoin market decline.

Bitcoin suffered a major value decline that reached $86,099 thus triggering widespread effects throughout the crypto market. About 230,000 traders were liquidated during the past 24 hours as their positions eroded by $1.06 billion at an 873 million dollar loss. Long positions held 873 million dollars of that total loss. 

The current market shows investors are reducing their exposure as open interest levels went down by 5%. The total exchange inflows experienced a 14.2% increase demonstrating rising market selling together with negative funding rates which indicate investor sentiment changes.

ETF Outflows and Stock Market Impact

The prices of Bitcoin-related financial instruments as well as stocks have experienced downward movement after the depreciation of Bitcoin’s worth. On February 24 alone investors pulled $516 million from spot Bitcoin ETFs operating in the U.S. which resulted in a combined five-day withdrawal of $1.1 billion from these funds. Shares from Coinbase (COIN) dropped by 6.4% and both Robinhood (HOOD) and Bitdeer (BTDR) lost 8% and 29% respectively while Marathon Digital (MARA) fell 9%.

The latest data from IntoTheBlock shows that 12% of Bitcoin addresses entered bearish positions indicating unrealized losses marking the most degenerative condition since October 2024. Investors who bought Bitcoins around its peak price of $108,000 could be propelled to sell because they now hold substantial price deficits.

Whale Activity and Macroeconomic Factors

Whales in the Bitcoin community have sold off more than $1.2 billion worth of Bitcoin in the past week during this bear market period. The trend toward Bitcoin sell-offs derives from various macroeconomic factors, especially President Donald Trump’s proposed tariffs on Canada and Mexico which generated inflation and stagnation concerns.

The investor fear of taking risks declined because political tensions between the United States and China concerning semiconductor trade restrictions continue to escalate.

The economic and geopolitical factors affect markets beyond cryptocurrency while creating significant impacts on financial value. Traditional financial sectors have suffered market declines following the Nasdaq Composite Index dropping by 2.8% while the S&P 500 Index lost 2.1%. The U.S. Dollar Index rose as investors favored safety which in turn generates extra pressure on Bitcoin and other risky assets.

Bitcoin maintains its $88,000 price as an essential barrier that determines its market strength. A decrease in the price below this point might lead to additional market liquidations. Market volatility is expected to persist in the approaching period due to high leverage tied to persistent economic uncertainty and weakening investor trust levels despite trader attention toward $90,000 as recovery support.