Bitcoin's $1.7 Billion Bloodbath: Panic Grips Crypto Market

Bitcoin holders suffered a collective loss of $1.7 billion as panic gripped the cryptocurrency market, according to data from CryptoQuant. The sell-off, which occurred as Bitcoin's price plummeted from $96,500 on Monday, February 24, to $86,050 on Tuesday, February 25, was the most significant since August 2024, when holders saw over $2.4 billion in losses.

Prominent crypto analyst Miles Deutscher described the event as another "capitulation" signal in Bitcoin's latest move lower. He noted that the crypto Fear and Greed Index had dropped to fear amid the market rout, indicating that investors were becoming increasingly nervous. However, Standard Chartered Global Head of Digital Asset Research Geoffrey Kendrick cautioned that "the big capitulation" had yet to happen, suggesting that more outflows from Bitcoin ETFs were expected following Monday's record nearly $1 billion exit.

As of writing, Bitcoin's price is trading near its local low of $86,050 at $86,200. Glassnode has warned that the asset's next significant support sits within the $71,000 and $72,000 price range. It remains to be seen where this further capitulation will take Bitcoin's price, but investors are advised to exercise caution and conduct thorough research before making any investment decisions.