On Tuesday, net withdrawals from US spot Bitcoin ETFs (exchange-traded funds) came close to hitting the $1 billion mark. With weekly withdrawals coming close to $1.5 billion, it signifies the continuation of these losses.
The withdrawals from the Bitcoin ETF coincide with a larger market sell-off that was greatly sparked by macroeconomic worries after President Trump’s tariff threats.
Bitcoin ETF net outflows near $1B
According to data from Trader T and Farside Investors, net outflows from Bitcoin ETFs on Tuesday were $937 million. With $344 million in redemptions, Fidelity’s FBTC was the largest of these withdrawals, followed by BlackRock’s IBIT with $164 million.
In a similar vein, Bitwise’s BITB and Grayscale’s BTC both had net outflows of $88 million and $85 million. Grayscale’s GBTC and Invesco’s BTCO had declines of $66 million and $62 million, respectively, while Franklin Templeton’s EZBC lost $74 million.
Similarly, BRRR, BTCW, and HODL saw net withdrawals of $25 million, $17 million, and $10 million, respectively, while Valkyrie, WisdomTree, and VanEck’s funds all recorded net outflows.
These withdrawals exceed records established on December 19, when Bitcoin fell below $97,000 and approximately $672 million was taken out of US spot Bitcoin ETFs.
The turnout indicates widespread concern on Wall Street, according to cryptocurrency investor Dissolve DC on X (Twitter). Notably, institutional investors can indirectly access Bitcoin using the spot Bitcoin ETF financial instrument.
Smells like panic, we’re close. We asked Wall Street to join the party this is what we get.
— Dissolve DC (@Dissolve_DC) February 26, 2025
Concerns over President Trump’s tariff confirmations, which led to up to $1 billion in liquidations across cryptocurrency markets, are blamed by experts for the panic. According to BeInCrypto, President Trump reopened discussions about imposing tariffs on Canadian and Mexican goods, which stoked concerns about inflation and discouraged investors from investing in riskier assets.
“We’re on time with the tariffs, and it seems like that’s moving along very rapidly…We’ve been mistreated very badly by many countries, not just Canada and Mexico. We’ve been taken advantage of,” Reuters reported, citing Trump at the White House.
Prior to extending a leg down to trade for $88,928 as of this writing, Bitcoin lost the critical support at $91,000. The withdrawals from digital asset investment products last week also demonstrated these worries.
Bitcoin price outlook: Key levels to watch
The BTC/USDT trading pair exhibits a change in market structure on a daily basis. This comes as the price of bitcoin fell below a crucial bearish breaker barrier, which was formerly a demand zone, in the $93,700 range. Given that the supply zone around $103,991 is still a significant resistance level, this switch increases the overhead pressure on Bitcoin.
The 200-day EMA at $85,696, which offers vital support, is getting closer to the price. Bearish momentum might be accelerated with a collapse below here. Buyers may intervene in the $67,797–$70,000 demand zone, which is the next significant support if the 200 EMA fails.
The relative strength index, or RSI, is at 29.80, suggesting that Bitcoin is oversold but lacking a distinct reversal signal. The downturn is further supported by a bearish crossing with deep negative histogram values displayed by the MACD (Moving Average Convergence Divergence).
Likewise, there is a high-volume node near $91,000 that serves as instantaneous resistance and is gray for bears. Below the present price, the low-volume area points to a possible steep decline.
All things considered, Bitcoin is at a critical support level. If buyers (bulls’ yellow bars) protect the 200 EMA, the price may rise back to $91,000. But in the upcoming weeks, $70,000 may be reached by a break lower.
The prediction is supported by IntoTheBlock’s Global In/Out of the Money measure. It indicates that Bitcoin is immediately up against opposition (red). Selling pressure from over 6.11 million addresses, which purchased 4.1 million BTC at an average price of $98,050, would offset any attempts to raise the price.
The $72,500 mark, where 6.76 million addresses hold around 2.65 million BTC purchased at an average price of $65,304, is where Bitcoin’s first significant support is located.
Strategy stock falls 11% as Bitcoin slips below $90K, sparking liquidation fears
On February 25, strategy shares fell 11% as Bitcoin fell below $90,000, sparking fears of a potential liquidation because of the company’s significant exposure to Bitcoin.
As the biggest corporate Bitcoin holder with 499,096 Bitcoin (BTC) worth around $44 billion, Strategy’s financial stability is directly correlated with changes in the asset’s value.
The precipitous decline has stoked rumors of a potential forced liquidation. But capital market experts The Kobeissi Letter pointed out in a Feb. 25 X post that these worries are overblown.
As of right now, Strategy has about $44 billion in Bitcoin and $8.2 billion in debt, keeping its leverage ratio at about 19%. Most of this debt is arranged as convertible notes with conversion values below the current stock price to reduce the danger of an abrupt default.
Market panic brought on a liquidation is not new. When Bitcoin fell from $70,000 to $15,000 in 2022, similar concerns arose, yet Strategy continued to purchase the cryptocurrency. Raising money, purchasing Bitcoin, and considering its holdings as assets rather than liabilities are the main tenets of the company’s business model.
The MicroStrategy liquidation:
As MicroStrategy, $MSTR, falls over -55%, many are asking about “forced liquidation.”
The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it?
Is liquidation even possible? Let us explain.
(a thread) pic.twitter.com/GcDZVu2gVa
— The Kobeissi Letter (@KobeissiLetter) February 25, 2025
However, it would be more challenging for Strategy to obtain funds if Bitcoin continued to drop. If Bitcoin fell far below Strategy’s typical buy price of $66,350, investor confidence may decline.
A forced liquidation would need a fundamental business event, such as bankruptcy, or a stockholder decision, both of which are improbable given the company’s financial structure.
Stategy’s founder, Michael Saylor, has stressed the company’s long-term Bitcoin plan while downplaying concerns of liquidation. Strategy has already purchased more than 50,000 Bitcoin in 2025 and now owns almost 2% of the total supply of the cryptocurrency.
After temporarily falling below $90,000, Bitcoin is currently trading at about $88,500 as of February 26. The cryptocurrency has fallen more than 5% in the last day and is still down around 20% from its peak of $110,000.
Shiba Inu (SHIB) shows mixed signals amid 30% monthly decline
After a 30% drop in February, Shiba Inu (SHIB) has been trading significantly below $0.000020 for the past month. It now has a market value of $8.25 billion. SHIB’s technical indicators are displaying conflicting signals despite this decline, which raises the prospect of a trend reversal.
BBTrend has turned positive and the RSI has lately recovered from oversold levels, suggesting a possible change in purchasing activity. Its EMA lines, however, are still in a bearish configuration, indicating that SHIB is still having trouble building a solid rally.
SHIB RSI is now neutral after becoming oversold
A few hours ago, SHIB’s RSI dropped to 21.6; it is now at 34.5. This is a significant drop from 56.5 two days ago.
The Relative Strength Index, or RSI, helps traders spot overbought or oversold situations by calculating the rate and change of price movements.
It has a range of 0 to 100, where readings below 30 indicate oversold levels and those above 70 indicate overbought situations. For the first time since February 3, SHIB just fell into oversold territory, signaling strong selling pressure.
SHIB is rebounding from oversold circumstances, but it is still in a precarious position with the RSI at 34.5. At this point, the selling momentum appears to be moderating, which might pave the way for a brief recovery.
Bearish emotion is still present, though, since the current RSI is still comparatively low. The RSI may indicate a change toward fresh purchasing activity if it keeps rising over 40.
On the other hand, if it drops again below 30, SHIB can experience further selling pressure.
Shiba Inu BBTrend is now positive, but not sustainably strong yet
After climbing from -1.55 just a day ago, Shiba Inu’s BBTrend went positive between yesterday and today, now resting at 5. Bollinger Bands are the source of the BBTrend indicator, which gauges a trend’s strength and direction.
Bullish momentum is shown by positive values, whilst bearish pressure is indicated by negative ones.
With a low of -7.58 on February 20, SHIB’s BBTrend has been negative for six days in a row. Strong selling pressure before to this latest turnaround was seen in this low.
Shiba Inu (SHIB) is displaying indications of fresh purchasing activity and possible bullish momentum with the BBTrend now at 5. This encouraging change raises the possibility of a brief rally by indicating that buyers are taking over.
Though the upturn in BBTrend is promising, the market is still trading at low levels in comparison to earlier rallies. Strengthening bullish feeling would be confirmed if BBTrend kept rising.
However, if it begins to fall once again, it can be a sign that buying power is waning, which might result in a price reduction.
Shiba Inu could rally 42% if a golden cross forms
For the first time since early February, the price of Shiba Inu just fell below $0.000014, continuing its downward trend. Its EMA lines remain in a bearish configuration, with short-term EMAs below long-term ones, suggesting that selling pressure is still there.
SHIB may challenge the support around $0.0000116 if this downward trend persists, and it may drop below $0.000012 for the first time since August 2024. Strong negative momentum is indicated by the large gap between the EMAs, which makes it challenging for buyers to recover control.
SHIB may challenge the resistance around $0.0000146, nevertheless, if it is able to buck current trend. If this level is broken, there may be a rally toward $0.000017. Additionally, the price of Shiba Inu may continue to rise to $0.0000196 if that hurdle is overcome.
For the first time since late January, the meme currency may breach over $0.00002 due to significant purchasing activity.
The short-term EMAs would have to cross above the long-term ones in order to indicate a trend reversal and this bullish scenario to materialize. The bearish EMA configuration indicates that downward pressure is probably going to continue until then.
