TLDR
- Bitcoin price retreated below the $67,000 threshold on Thursday amid broader market risk aversion
- Spot Bitcoin ETFs in the United States attracted $506 million in net inflows, marking the strongest daily performance in 14 days
- BlackRock executed a substantial purchase of approximately 4,309 BTC valued at $289.6 million in just 60 minutes
- Wallet addresses holding 100 BTC or more climbed to nearly 20,000, signaling positive market sentiment according to Santiment
- Persistent profit-taking continues to prevent Bitcoin from breaking through the $70,000 resistance level
Bitcoin retreated beneath the $67,000 mark on Thursday, giving back some gains after Wednesday’s impressive rally that pushed the cryptocurrency up over 6%.
The decline mirrored broader weakness across Wall Street, where even positive earnings from Nvidia couldn’t sustain momentum in technology stocks. This risk-averse market environment extended to digital assets and other speculative investments.
At press time, Bitcoin was hovering around $66,900, representing approximately a 1.6% decline for the session based on TradingView data.
The previous day’s rally was primarily fueled by value-seeking investors following Bitcoin’s nearly 50% correction from its October peak. Additionally, traders holding short positions were forced to cover, creating a squeeze effect.
Coinglass data revealed that $468.7 million in short positions were liquidated during a 24-hour period.
However, Thursday’s price weakness didn’t deter institutional appetite. U.S. spot Bitcoin ETFs attracted $506.51 million in net capital on February 25, representing the strongest single-day performance in 14 days, per SoSoValue data.
ETF Inflows Surge
BlackRock’s IBIT dominated with $297.37 million in net inflows. Fidelity’s FBTC contributed $30.09 million, while Grayscale’s GBTC saw $102.49 million flow in. Bitwise’s BITB recorded $39.37 million in additions.
BlackRock executed another significant acquisition on February 26, purchasing roughly 4,309 BTC valued at approximately $289.6 million in just one hour. These transactions involved transfers from Coinbase Prime hot wallet infrastructure to IBIT custody wallets.
Eric Balchunas, Bloomberg’s ETF analyst, acknowledged the renewed interest following weeks of persistent outflows, though he expressed caution about whether this represents a genuine trend reversal or merely temporary buying activity.
CryptoQuant’s Julio Moreno observed on X: “Bitcoin spot demand is growing for the first time since late November.”
Wallet Data Offers a Bullish Signal
Cryptocurrency analytics provider Santiment highlighted that 19,993 distinct wallet addresses held 100 BTC or more as of Thursday, approaching the significant 20,000 threshold.
Santiment characterized this development as indicating “less extreme consolidation,” suggesting Bitcoin is being spread across a broader base of substantial holders instead of remaining concentrated among a limited cohort.
Nevertheless, Santiment acknowledged that the total percentage of supply controlled by this category has remained stable, indicating continued selling pressure from some long-term holders. “This is why prices have stayed suppressed,” the platform explained.
Blockchain analytics provider Glassnode observed that profit-taking activity has consistently disrupted recovery attempts below the $70,000 level throughout February.
The Coinmarketcap fear and greed index held at “extreme fear” territory on Thursday, showing no improvement from earlier in the week.
Bitcoin has declined roughly 24.59% over the trailing 30-day period and approximately 47% from its October all-time high.
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