Bitcoin Crash 2026: $438M Liquidated in 24 Hours

By Jahid Khan

The cryptocurrency market faced intense selling pressure over the past 24 hours, leading to widespread liquidations across derivatives exchanges. More than $438 million in long positions were wiped out as traders betting on price continuation were forced to exit their positions.

The sudden correction was led by Bitcoin, which fell below the $65,000 level and triggered a wave of automated liquidations. The broader crypto market followed, resulting in sharp short-term losses across major digital assets.

As someone who has been analysing financial and digital markets for years, I have observed that such corrections are rarely isolated events. They are often driven by a combination of leverage buildup, macroeconomic uncertainty, and shifting investor sentiment. This recent move reflects exactly that pattern.

What Happened in the Last 24 Hours?

Derivatives data shows total liquidations reaching approximately $507 million, with long positions accounting for nearly 86% of that amount. More than 136,000 traders were affected during the volatility spike.

Bitcoin alone represented $233 million of the total liquidations. Open interest in Bitcoin futures dropped significantly, falling to nearly $19.5 billion from January highs. This decline signals that many leveraged positions were closed either voluntarily or through forced liquidation.

The selling began when Bitcoin slipped below $65,000 late Sunday. Within a short span, the price dropped nearly 5%, reaching around $64,300. That move accelerated selling pressure in altcoins and pushed total crypto market capitalisation down by over $100 billion.

Market sentiment indicators moved sharply into extreme fear territory. Historically, such readings suggest panic-driven decisions among retail participants while larger investors reassess positioning.

Bitcoin’s Current Position

As of February 24, 2026, 10 AM IST, Bitcoin is trading in the $64,300–$64,600 range, reflecting a weekly decline of roughly 7%.

Technical levels between $64,090 and $64,536 are being closely watched. A sustained move below this zone could potentially open the door for further liquidations estimated in the billions, based on current leverage data.

Funding rates have turned negative on several exchanges, indicating that short sellers are paying premiums to maintain their positions. In previous cycles, such shifts have sometimes preceded stabilisation phases, though confirmation typically requires volume recovery and broader sentiment improvement.

Bitcoin dominance has also increased, suggesting capital rotation from smaller tokens into larger, more established assets.

Broader Economic Factors

The correction did not occur in isolation. Several macroeconomic developments contributed to the shift in sentiment:

• Trade policy announcements under the administration of Donald Trump added uncertainty to global markets.

• Legal developments involving the Supreme Court of the United States extended regulatory uncertainty in certain sectors.

• Strong employment data and persistent inflation reinforced expectations that interest rates may remain elevated.

Technology stocks also experienced consolidation during the same period. Since crypto assets often correlate with risk-sensitive markets, broader equity weakness can amplify volatility in digital assets.

Additionally, crypto exchange-traded funds recorded $3.8 billion in outflows in February, marking the fourth consecutive week of withdrawals. Assets under management declined to levels last seen in April 2025.

Market analyst Willy Woo has previously noted that long-term structural adoption remains intact, but short-term volatility should be expected during periods of macro adjustment.

Impact on Altcoins

Major altcoins followed Bitcoin’s move downward.

Ethereum declined between 5–8%, while Solana experienced similar pressure.

Chainlink showed relative stability compared to other large-cap tokens, although it still reflected broader market weakness.

Overall, crypto open interest has dropped significantly compared to 2025 highs, suggesting a broader reduction in speculative positioning. While painful in the short term, such resets often reduce excessive leverage in the system.

Indian Market Perspective

In India, Bitcoin is trading near ₹58 lakh on major exchanges. The price reflects both global movement and rupee fluctuations.

India’s 30% crypto tax structure continues to provide regulatory clarity, though high taxation levels impact short-term trading volumes. During periods of global uncertainty, Indian retail traders tend to reduce exposure, while experienced participants focus on risk management.

From my professional experience in digital media and financial content analysis, I have noticed that Indian investors increasingly seek educational insights rather than emotional commentary during volatile phases. Clear data interpretation builds trust more effectively than dramatic headlines.

For content creators and financial analysts, this phase presents an opportunity to explain:

• How liquidation mechanisms work

• Why does leverage increase risk?

• How macroeconomic events influence crypto markets

• The importance of disciplined capital allocation

Such educational positioning helps audiences navigate uncertainty more responsibly.

Recovery Possibilities and Risk Factors

Market recovery depends on several variables:

• Stabilisation above key support levels

• Reduction in forced liquidations

• Improvement in macroeconomic clarity

• Renewed institutional inflows

Options markets indicate interest in higher long-term price targets, including $100,000 strikes. However, downside risk remains if Bitcoin falls below the $60,000 level.

Investor Michael Novogratz has previously emphasised that crypto cycles often move in extended phases, combining corrections and expansions.

Historical patterns show that significant deleveraging events can create conditions for gradual rebuilding, though timing remains uncertain.

Key Takeaways

1. Excessive leverage increases systemic vulnerability.

2. Macroeconomic developments significantly influence digital asset pricing.

3. Liquidation events often accelerate volatility beyond fundamental shifts.

4. Market resets can reduce speculative excess.

5. Long-term positioning requires disciplined risk management.

From my perspective as a writer and market observer, this correction represents a structural adjustment rather than a fundamental breakdown of the crypto ecosystem.

Volatility is inherent in emerging asset classes. Investors who approach markets with clear risk frameworks tend to navigate such periods more effectively.

Final Thoughts

The recent $438 million liquidation event underscores the importance of measured participation in highly leveraged environments. While short-term uncertainty remains, market history suggests that cycles of expansion and correction are part of the asset class’s evolution.

Bitcoin and the broader crypto market are currently undergoing recalibration. Whether this phase leads to further downside or stabilisation will depend largely on macroeconomic clarity and capital flows in the coming weeks.

For traders, caution is necessary. For long-term observers, this phase offers insight into how leverage shapes price movements.

As a financial content writer, my goal is to present developments with clarity, context, and accountability, without exaggeration or speculation.

— Jahid Khan