Cryptocurrency Plunges On Futures Market Liquidation

Coinglass "$1.5 billion at Futures Market Liquidation on Feb. 25"
BTC/Altcoin Plunges Late Afternoon On Feb. 25 by Big Liquidation
Binance CEO "Crypto to Bounce Back as Before After Plunge"

Cryptocurrencies including Bitcoin(BTC) plunged on Feb. 26 due to the liquidation of the large futures market.

According to data from the on-chain analysis platform Coinglass, the liquidation of the cryptocurrency futures market reached $1.5 billion on Feb. 25.

Funds from investors in the futures market seeking to rebound from the recent decline were largely liquidated on the night of Feb. 25, with Bitcoin recording a drop of up to 7% and Altcoin averaging more than 15%.

Altcoins also rebounded about 5% on average, including Bitcoin's 2% rebound in low-priced buying early on Feb. 26, but they are unable to make up for the decline.

◇Bitcoin = Bitcoin price is $88,946 at 4:30 p.m. on Feb. 26, 2025. The Bitcoin share(dominance) was 61.08%.

The long(up) and short(down) betting ratios in the Bitcoin futures market stood at 73.44% and 26.56%, according to the on-chain analytics platform Sigbtc.

Despite Bitcoin's plunge, experts say that the Bitcoin uptrend is not over yet.

Richard Teng, CEO of Binance, said in his X account on the 25th, "This kind of plunge in the cryptocurrency market has existed before and the market has recovered even more at the time," adding, "The market's plunge is not a market turnaround, but a tactical retreat."

CEO Richard Teng emphasized that cryptocurrencies have shown very fast resilience compared to existing assets.

"The cryptocurrency market has fallen like existing assets due to macroeconomic factors, but unlike existing assets, it has shown rapid resilience," he said. "These cases are evidence that we should maintain optimism." CEO Richard Teng pointed to a case in which Bitcoin recovered after falling below $20,000 to the U.S. Federal Reserve's decision to raise interest rates in 2022.

◇Upward Coin = The cryptocurrency that recorded the largest increase from the previous trading day at 4:30 p.m. on Feb. 26 was STP(STPT), up about 8% on the day alone.

STP token is an Ethereum-based token and is distributed around the world on a smart contract platform that allows assets to be tokenized in a way that complies with national regulations.

STP is co-founder of Chinese Mike Chen and Korean Lee Shin-hye, and has distributors in global exchanges such as Binance and Huobi in addition to Upbit.

◇Fear Greed Index = The cryptocurrency fear-greed index provided by Alternative maintains a 'Fear' level with 21 points. The fear stage (20-39) is a stage where cryptocurrency price volatility and trading volume increase, and the price falls. Since there is a high possibility of forming a low point in the short term, one should be careful about buying.

The cryptocurrency relative strength index(RSI) provided by Sigbtc was 29.3, which was 'over-selling'. RSI sets the relative strength between the upward and downward pressure of a particular asset price and is an indicator of a measure of over-purchasing and over-selling of a particular asset.

권승원 기자 ksw@blockstreet.co.kr