Key Takeaways
- Bitcoin dropped below $67,000 on Thursday as broader markets experienced risk-off sentiment
- U.S. spot Bitcoin ETFs recorded $506 million in net inflows, the highest level in two weeks
- BlackRock acquired approximately 4,309 BTC worth $289.6 million within a single hour
- Nearly 20,000 wallet addresses now hold 100 BTC or more, potentially signaling market strength per Santiment
- Ongoing profit-taking activity continues preventing Bitcoin from reclaiming the $70,000 level
Bitcoin slipped below the $67,000 mark on Thursday, erasing gains from Wednesday’s powerful rally that had lifted the cryptocurrency more than 6%.
The pullback reflected broader market weakness across traditional equities, where even strong earnings from Nvidia failed to support technology stocks. This cautious market sentiment spilled over into speculative asset classes, pulling cryptocurrency prices down.
As of publication, Bitcoin was trading near $66,900, down approximately 1.6% over the preceding 24 hours according to TradingView figures.
Wednesday’s upward momentum originated largely from bargain hunters entering the market after Bitcoin had dropped nearly 50% from its October peak. The rally gained additional fuel from a short squeeze that compelled bearish traders to close their positions.
Data from Coinglass showed that short positions totaling $468.7 million were liquidated during a 24-hour window.
Despite Thursday’s price decline, institutional demand exhibited significant strength. U.S. spot Bitcoin ETFs posted aggregate net inflows of $506.51 million on February 25, representing the most robust daily figure in two weeks, according to SoSoValue statistics.
ETF Demand Reaches Two-Week High
BlackRock’s IBIT led the charge with $297.37 million in net inflows. Fidelity’s FBTC added $30.09 million, while Grayscale’s GBTC recorded $102.49 million. Bitwise’s BITB contributed an additional $39.37 million.
BlackRock completed a major direct purchase on February 26, acquiring 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 custody addresses.
Eric Balchunas, ETF specialist at Bloomberg, noted that the demand surge arrived at a favorable time after weeks of continuous outflows, though he emphasized it’s too early to conclude whether this represents a sustained trend reversal or simply temporary purchasing 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 analytics platform Santiment reported that 19,993 separate wallet addresses held 100 BTC or more as of Thursday, coming within seven addresses of reaching the 20,000 threshold.
Santiment described this trend as reflecting “less extreme consolidation,” suggesting Bitcoin is distributing among a wider group of substantial holders rather than concentrating within a narrow elite.
However, Santiment noted that the total supply percentage controlled by this segment remains relatively unchanged, indicating some established holders are continuing to sell. “This is why prices have stayed suppressed,” the analytics provider stated.
On-chain data firm Glassnode noted that profit-taking behavior has stalled every recovery attempt below $70,000 during February.
The Coinmarketcap fear and greed index showed “extreme fear” as of Thursday, unchanged from earlier in the week.
Bitcoin has fallen approximately 24.59% during the past 30 days and remains about 47% beneath its October record high.
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