Bitcoin Drops $1,500 in 20-Minute Move as Liquidation Risk Surges

Bitcoin fell $1,500 within 20 minutes on February 17, 2026, as selling pressure mounted. The price hovered near $68,000 but struggled to sustain a rebound above $70,000. Analysts noted increased short-term volatility amid a fragile market structure.

Liquidation risks have intensified as Bitcoin approached key price levels. If Bitcoin drops below $66,000, cumulative long liquidation intensity on mainstream CEXs could reach $834 million. A breakout above $70,000 would trigger $572 million in short liquidation intensity.

ETF outflows have also contributed to a weaker demand environment. Cumulative flows turned negative in early 2026, with $1.8 billion in net outflows recorded. This decline follows a period of strong inflows and speculative activity.

Why the Move Happened

Bitcoin's recent volatility reflects shifting investor sentiment and macroeconomic uncertainty. The weekly RSI has dropped to 27.8, its lowest level since June 2022, indicating a near-oversold condition.

Forced liquidations have declined in recent weeks, suggesting that the current price correction may be nearing its bottom. However, a risk-off environment remains, with unexpected news or investor panic potentially extending the sell-off.

How Markets Reacted

Bitcoin treasury holders have also faced losses amid the price drop. Japan-based Metaplanet reported a $665 million impairment loss on its Bitcoin holdings due to the broader market decline. The firm holds roughly 35,102 BTC and adopted a Bitcoin accumulation strategy in April 2024.

Other companies with Bitcoin exposure are seeing mixed results. Hyperscale Data reported a Bitcoin treasury of 600.5299 BTC with combined cash and Bitcoin holdings of approximately $87.6 million. The company plans to continue acquiring Bitcoin over time.

What Analysts Are Watching

The behavior of institutional investors is a key focus for analysts. Abu Dhabi-based Mubadala Investment Company increased its stake in BlackRock's Bitcoin ETF by 46% in Q4 2025, reflecting continued institutional confidence.

In contrast, Harvard's endowment reduced its position in BlackRock's Bitcoin ETF by 21% in Q4 2025 while increasing its exposure to Ether. The shift from Bitcoin to Ethereum reflects a strategic rebalancing amid uncertainty.

The coming weeks will likely test Bitcoin's resilience. A sustained recovery may begin once liquidation pressure subsides and new buying activity stabilizes the price.