Bitcoin Plummets $12K in Three Days, $1B in Leveraged Positions Liquidated

Bitcoin's price has plummeted, reaching its lowest level since November 2024, with a decline of over $12,000 in just three days. This sharp drop has led to the liquidation of more than $1 billion in leveraged long positions. Several factors have contributed to this decline, including market uncertainty, selling pressure from large-scale liquidations, and concerns about economic stability.

On February 26, Bitcoin dropped to $83,500, marking a 12% decline over the past seven days. The sharp decrease resulted in substantial losses for traders holding long positions. Data from CoinGlass shows that the downturn led to the liquidation of over $1 billion in leveraged positions, increasing selling pressure.

Following the liquidations, a recent report has highlighted the top 4 crypto tokens to buy during the dip for long-term gains: XRP, Solana, Ethereum, and SUI. These altcoins, despite the recent downturn, are backed by institutional inflows and bullish fundamentals.

Bitcoin's price decline aligns with broader market fears, including concerns over a potential global economic downturn. Investors are shifting toward safer assets such as U.S. Treasurys and gold amid rising uncertainty. Gold prices initially surged but later dropped 2.2% as broader financial markets reacted to economic instability.

Derivatives market activity has also influenced Bitcoin price movement. Analysts have noted that the upcoming $5 billion Bitcoin options expiry on February 28 has led to increased volatility. The max pain level for options is around $98,000, suggesting that investors may attempt to keep Bitcoin price within a specific range.