Bitcoin’s Plunge: Why Your Crypto Wallet is Crying Right Now! 😂💸

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So, Bitcoin decided to take a nosedive to $86,099 on February 26th, and guess what? It wiped out a staggering $1.06 billion from the crypto market cap. I mean, who needs a rollercoaster when you have Bitcoin, right? 🎢 According to Coinglass, about 230,000 positions were liquidated that day. Talk about a bad hair day for crypto! 💁‍♀️

In a classic case of “Oh no, what have I done?”, the digital asset’s open interest has plummeted to 5%. That’s like the crypto equivalent of a sad puppy. 🐶 On-chain data shows exchange inflows skyrocketed to 14.2%, which is basically code for “panic selling.” And funding rates? They’re now in negative territory, which is like the emotional state of a teenager who just got dumped. 😢

Massive Losses For Holders As BTC Tests $86K

As the reigning champ of digital assets, Bitcoin’s dramatic price drop sent shockwaves through the industry. With its price flirting with the $90k mark, thousands of positions were liquidated faster than you can say “HODL.” Strong withdrawals from spot Bitcoin ETF funds were also recorded, with a five-day outflow totaling $1.1 billion. That’s a lot of zeros! 💰

In a Twitter/X post, InTheBlock revealed that around 12% of all BTC addresses are now in the red. It’s like a bad episode of “Extreme Makeover: Crypto Edition.” The post also mentioned that this is the highest unrealized loss percentage for Bitcoin since October 2024. So, if you’re feeling down about your investments, just remember: at least you’re not alone! 🙃

With Bitcoin briefly dropping below $90k, roughly 12% of all Bitcoin addresses are holding at a loss.

This is the highest unrealized loss percentage since October 2024.

— IntoTheBlock (@intotheblock) February 25, 2025

Crypto-Related Stocks Fall

And it’s not just individual holders feeling the burn; crypto-related stocks are also taking a hit. Michael Saylor’s Strategy is one of the biggest victims, with its stock price dropping 11% in the past 24 hours. It’s like watching your favorite sitcom get canceled. 📺

Strategy boasts a portfolio worth over $43 billion, including 499,096 Bitcoin. But with Bitcoin’s price plummeting, everyone’s wondering if they’ll sell some assets. Spoiler alert: experts say it’s unlikely a company will fully commit to crypto. I mean, who wants to be the last one at the party when the lights come on? 🎉

Other crypto-related stocks are also tumbling, with Robinhood (HOOD) dipping by 8%, Coinbase (COIN) suffering a 6.4% decline, and Marathon Digital (MARA) and Bitcoin miners Bitdeer (BTDR) dropping 9% and 29% respectively. It’s like a crypto-themed game of musical chairs, and everyone’s losing! 🎶


Traditional Stocks Also Suffered

Bitcoin’s drama didn’t stop there; it also affected the broader market. The Nasdaq Composite dropped by 2.8%, and the S&P 500 surrendered 2.1% of its market cap. It’s like a bad breakup that just keeps affecting everyone around you. 😩

Observers noted the sudden strength of the US Dollar Index, suggesting that many investors are looking for “safety havens.” Because nothing says “I’m safe” like hiding under your bed, right? 🛏️

On-chain data indicates a recent surge in crypto whale activities, with Bitcoin whales selling over $1.2 billion worth of digital assets. Analysts say Bitcoin’s decline is due to macroeconomic conditions. Apparently, the market is still reeling from US President Donald Trump’s tariff announcement, and geopolitical tensions between China and the United States are making investors rethink their long-term plans. So, basically, it’s a hot mess out there! 🔥

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2025-02-26 18:42