Key Points
- Yesterday, BTC holders realized the largest loss since August 2024 at $1.7 billion.
- However, on-chain reports revealed that BTC whales bought the dip.
Today, Bitcoin recorded a price recovery from $86,000 levels above $88,000, following a huge day of liquidations, and over $1 billion in BTC ETF outflows.
Today, an important crypto event will take place in the US - the first-ever digital asset subcommittee hearing which represents the first step towards bipartisan legislation.
Bitcoin Trades Above $88,000
At the moment of writing this article, BTC is trading above $88,000, seeing a rebound from the recent dip to $86,000.
Yesterday, BTC recorded a sharp drop in price from above $91,000 to $86,000 levels, amidst significant liquidations and BTC ETF outflows.
On February 25, the US crypto products recorded over $1 billion in outflows, with Fidelity's BTC ETF, FBTC, seeing the biggest outflows above $344 million. BlackRock's IBIT came next with over $164 million, according to data from SoSoValue.
This was the sixth consecutive day of outflows for the crypto products.
BTC Holders Recorded Largest Loss Since August 2024 Yesterday
Earlier, Crypto Quant's Head of Research, Julio Moreno, highlighted that on February 25, Bitcoin holders realized the largest loss since August 2024, at over $1.7 billion.
Yesterday, Glassnode revealed in a post via X that BTC STHs realized losses had spiked to $23.4 million on February 24, marking one of the largest spikes in the past three months.
For comparison, previous peaks were at $38 million on February 3 and $25 million on December 20, according to their notes.
However, yesterday's dip did not go unnoticed by the crypto whales who reportedly seized the occasion to buy BTC at a discount.
BTC Whales Bought the Dip
CryptoQuant reported that on February 25, 26,430 BTC flowed into whale accumulation addresses which are often linked to OTC deals and long-term custody.
We also reported that on-chain metrics showed that BTC traders were buying the dip on the Kraken crypto exchange anticipating a price rebound.
Yesterday, even Donald Trump's son, Eric Trump told his followers to buy the BTC dip.
While the crypto markets shook off weak hands, LTH continue to accumulate regardless of the volatility.
Today is an important day for the crypto industry as the US Senate Committee will hold the first-ever Digital Asset Subcommittee hearing, according to Cynthia Lummis quoted by Scott Melker.
1st Digital Asset Subcommittee Hearing
Senator Cynthia Lummis shared a post via X, explaining that she was gearing up for the first digital asset subcommittee hearing today.
Here's what this means:
- This is the first step towards bipartisan legislation.
- The meeting will include experts who shape policy on market structure and stablecoins.
The crypto industry has enough reasons to remain bullish amidst so many efforts to preserve and support innovation in the US and abroad.
Binance's CEO, Richard Teng, also advised the crypto industry to remain calm and continue building despite volatility.
