Key Takeaways
- Bitcoin dropped below $67,000 on Thursday as risk-off sentiment dominated markets
- U.S. spot Bitcoin ETFs recorded $506 million in net inflows, the strongest showing in two weeks
- BlackRock acquired roughly 4,309 BTC worth $289.6 million within a single hour
- Nearly 20,000 wallet addresses currently hold 100 BTC or more, indicating healthy distribution according to Santiment
- Ongoing profit-taking activity continues limiting Bitcoin’s ability to reclaim $70,000
Bitcoin slipped below the $67,000 mark on Thursday after experiencing a strong Wednesday surge that delivered gains exceeding 6%.
The downturn reflected broader market anxiety across traditional equity markets, where technology stocks faced selling pressure despite Nvidia posting strong quarterly results. This cautious investor sentiment spilled over into cryptocurrency markets, pushing digital assets lower.
As of publication, Bitcoin traded near $66,900, down approximately 1.6% from the previous day according to TradingView figures.
Wednesday’s upward momentum resulted largely from bargain hunters entering positions after Bitcoin had plunged nearly 50% from its October peak. A significant short squeeze amplified the rally as pessimistic traders scrambled to exit their bearish bets.
Data from Coinglass showed that short position liquidations totaled $468.7 million during the 24-hour span.
However, despite Thursday’s negative price movement, institutional buying interest intensified significantly. U.S. spot Bitcoin ETFs attracted $506.51 million in combined net inflows on February 25, representing the most robust single-day performance in fourteen days, according to SoSoValue figures.
ETF Demand Reaches Two-Week High
BlackRock’s IBIT led the charge with $297.37 million in net inflows. Fidelity’s FBTC brought in $30.09 million, while Grayscale’s GBTC captured $102.49 million. Bitwise’s BITB accounted for an additional $39.37 million.
BlackRock conducted a major direct purchase on February 26, accumulating approximately 4,309 BTC valued at roughly $289.6 million within just sixty minutes. The operation involved moving assets from Coinbase Prime hot wallets to IBIT custodial accounts.
Eric Balchunas, an ETF specialist at Bloomberg, noted the timing of this demand surge was favorable after extended periods of capital outflows, though he stressed it remains too early to confirm whether this represents a lasting trend shift or simply short-term buying activity.
Julio Moreno from CryptoQuant noted on X: “Bitcoin spot demand is growing for the first time since late November.”
Large Holder Distribution Suggests Positive Momentum
Data intelligence platform Santiment reported that 19,993 separate wallet addresses held 100 BTC or more as of Thursday, approaching the psychologically significant 20,000 threshold by just seven addresses.
Santiment described this pattern as reflecting “less extreme consolidation,” suggesting Bitcoin ownership is expanding across a wider pool of substantial investors instead of being concentrated among a narrow group.
Yet Santiment noted that the overall supply percentage controlled by this segment remains relatively unchanged, implying some established holders are still selling. “This is why prices have stayed suppressed,” the platform stated.
Blockchain analytics provider Glassnode noted that profit realization has consistently undermined every recovery attempt below $70,000 throughout February.
The Coinmarketcap fear and greed index showed “extreme fear” as of Thursday, unchanged from earlier this week.
Bitcoin has fallen approximately 24.59% during the last 30 days and trades roughly 47% beneath its October record high.
