Bitcoin Decline: $370 Million in Liquidations as Corporations Protect $60,000 Level

Bitcoin markets experienced a significant deleveraging event overnight, resulting in over $370 million in forced liquidations that eliminated leveraged long positions as prices fell toward the $60,000 mark.

While retail traders capitulated under the strain of the abrupt crypto market downturn, corporate treasuries, spearheaded by aggressive buyers like Metaplanet, intervened to mitigate the selling pressure.

The immediate trajectory of the market now depends on whether bulls can uphold the crucial $60,000 level, a psychological and technical barrier that distinguishes a healthy correction from a severe bear market structure.

Key Takeaways

• In the last session, total crypto liquidations exceeded $370 million, with Bitcoin futures open interest declining by 20% from its peak.
• Institutional accumulation continues despite the downturn, with firms like Metaplanet making strategic spot purchases to maintain their average cost basis.
• Technical indicators identify $60,000 as the critical threshold; a confirmed breakdown would target $55,000 as the next significant liquidity area.

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Why Is the Crypto Market Crashing?

The sell-off was fueled by a cascading liquidation loop rather than a fundamental collapse. Data from CoinGlass and major exchanges indicate that the market eliminated over $370 million in positions, with long traders responsible for $275 million, or 74% of the losses.

This flush was intensified by a sharp decrease in Bitcoin futures open interest, which fell from $61 billion to $49 billion within a few days, signaling that speculative excess is being aggressively purged from the system.

Traders were taken by surprise by the rapidity of the move. Earlier this month, during another downturn, Bitcoin recorded a -6.05σ rate-of-change drop, statistically comparable to the volatility observed during the FTX collapse.

The catalyst for this volatility appears to be macro-driven, as concerns regarding impending tariff policies caused risk assets to plummet. When Bitcoin’s price dipped below the 200-day moving average, it triggered a series of stop losses, accelerating the Bitcoin liquidations.

Bitcoin liquidation heatmap illustrating a significant long flush. Source: CoinGlass

Metaplanet and Treasuries Buy the Dip

While retail panic dominated the news, on-chain data presents a different narrative among institutional accumulation desks.

Metaplanet, the Japanese investment firm emulating its treasury strategy after U.S. counterparts, is reportedly increasing its Bitcoin holdings during the downturn, as indicated by X posts from CEO Simon Gerovich.

おはプラネット。最近の株価動向を踏まえ、株主の皆さまにとって厳しい状況が続いていることは、私たちも十分に認識しています。しかしながら、メタプラネットの戦略に変更はありません。私たちは引き続き、ビットコインの積み上げ、収益の拡大、そして次の成長フェーズに向けた準備を、着実に進めてい…

— Simon Gerovich (@gerovich) February 6, 2026

This behavior aligns with a broader trend of strategic accumulation, where corporations leverage sharp declines to reduce their cost basis instead of retreating to cash.

This follows the example set by MicroStrategy. Michael Saylor suggests that Strategy’s 100th Bitcoin purchase often coincides with market fear, highlighting the divergence between short-term speculators and long-term treasury holding strategies.

While these entities face paper losses during a correction, their ongoing purchases create a localized support level, preventing the price from entering a complete freefall.

Current market conditions are a stress test for conviction. We are seeing continued accumulation from corporate treasuries despite the -4% daily candle.

— CryptoAnalyst (@CryptoAnalyst) February 24, 2026

Bitcoin Price Analysis: Critical BTC Support Levels

The technical landscape has reached a pivotal point. Bitcoin is currently testing the BTC support levels at $60,000, a zone that corresponds with high-volume nodes from late 2025.

The Relative Strength Index (RSI) on the daily chart has dropped into oversold territory, currently registering just below 30. Historically, such low RSI readings often precede a sharp mean reversion bounce, but the structural damage on the weekly timeframe remains a concern.

Source: Tradingview

If bulls are unable to defend $60,000, the path of least resistance shifts to the downside. One CryptoQuant analyst advises monitoring the $54,700 price level as the ultimate invalidation point for the bullish scenario.

Sentiment markets are already factoring in this risk; Polymarket odds on a Bitcoin price drop to $55K have surged, indicating increasing skepticism about an immediate V-shaped recovery.

To regain bullish momentum, price action must first stabilize above $62,500 and then confront the $67,500 resistance block. Until a daily close above that level occurs, the trend remains firmly in bear territory.

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Tariff Fears Fuel Record Outflows

The current drawdown extends a challenging start to the year, with digital assets experiencing their longest streak of negative weekly returns since 2022.

Much of this selling is precautionary, driven by the ongoing discussions regarding U.S. tariff implementation under the 1974 Trade Act. The uncertainty has strengthened the dollar, effectively draining liquidity from high-beta assets like crypto.

Institutional flows reflect this risk-off rotation. Spot Bitcoin ETFs have recorded their fifth consecutive week of outflows, indicating that traditional finance allocators are de-risking until the regulatory environment stabilizes.

Until these flows reverse, spot markets lack the persistent demand needed to counter derivative sell pressure.

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