Bitcoin Slips 2.4% Sunday, Long Bets Account for Majority of $415M in Liquidations

Bitcoin fell 2.4% on Sunday, March 1, 2026, pushing the price just above $65,000 after a brief rebound above $67,000. The move triggered significant liquidations across derivatives markets, with over $415 million in positions wiped out over the past 24 hours. Of that, $246 million was tied to long positions, primarily in Bitcoin.

Over 91,876 traders were liquidated in the same period, with leveraged traders bearing the brunt of the losses. A 40x leveraged long position on Hyperliquid was partially liquidated amid the sharp drop. This highlights the heightened vulnerability of leveraged traders during sharp price corrections.

Market sentiment remains fragile, with prediction markets and indicators pointing toward pessimism. The Crypto Fear and Greed Index currently stands at 14 out of 100, reflecting extreme fear, a level commonly associated with market bottoms or consolidation phases.

Why Did This Happen?

The price drop was fueled by a combination of profit-taking after Bitcoin briefly reclaimed $67,000 and broader macroeconomic concerns. Traders and investors are reacting to a volatile environment, with many opting to hedge against further declines. For example, Bitcoin ETF holders and corporate treasuries have been aggressively purchasing put options at $60,000 or below to protect against a potential sharp price decline.

Large-scale hedging activity has led to open interest in $60,000 Bitcoin puts reaching $1.5 billion, the highest across all strikes and expiries. This reflects growing concerns about a steeper correction, especially among institutional holders.

The liquidation event primarily impacted leveraged long positions, which account for the majority of losses. Prediction markets show a 62% probability of Bitcoin falling to $55,000 before reaching $84,000, highlighting the bearish outlook.

The Crypto Fear and Greed Index, which combines six components like volatility, market momentum, and social media sentiment, continues to signal extreme fear. Readings below 20 are typically associated with market bottoms, and historical context shows similar readings during past market crashes.

Investor sentiment has not yet stabilized, with the index indicating a deep market correction phase. This suggests the market is still in a consolidation period, with no clear direction yet.

Analysts are closely monitoring whether the current price level can hold or if further selling pressure could push Bitcoin below $60,000. The $60,000 level is a key psychological and technical support level, and breaking it could trigger more liquidations and panic selling.

The broader market is also watching the activity of major institutional holders and ETF flows. Bitcoin ETFs have seen a rebound, with $507 million in inflows reported as BTC reclaimed $68,000. This is the largest daily inflow since February 2 and suggests renewed investor interest.

The regulatory environment also remains a factor, with SEC Chairman Paul Atkins confirmed as a speaker at Bitcoin 2026. His participation signals a shift in the SEC's approach to digital assets and could influence market sentiment.

Market observers are also watching the effectiveness of hedging strategies and whether more investors will adopt protective measures like put options to mitigate downside risk. According to reports, such strategies are becoming increasingly common.