- Bitcoin dropped below $88K, triggering over $1.5B in liquidations.
- Richard Teng downplayed the crash, calling it a “tactical retreat,” citing historical resilience and ongoing institutional interest in crypto.
- Bitcoin ETFs have amassed $39.03B but saw outflows of $539M on Feb 24 and $366M on Feb 25.
Over the past 24 hours, the cryptocurrency market has experienced another sharp decline, with Bitcoin (BTC) falling below $88K (AU$138K) and triggering widespread liquidations.
Ethereum (ETH) and Solana (SOL) also suffered major losses as investors struggled with market volatility. Funny enough, while retailers sell, institutional players like Strategy continue accumulating Bitcoin.
Overall, the downturn, although that term sounds like an understatement, has wiped out over $1.5B (AU2.36B) in leveraged positions, primarily long traders.
Related: Strategic Bitcoin Reserves Facing Republican Opposition Among the States
It’s All Good, Says Binance CEO
Binance CEO Richard Teng downplayed the recent crash, which resulted in an 8% drop in the total cryptocurrency market capitalisation. He described it as a “tactical retreat” rather than a sign of structural weakness.
In a social media post on February 25, Teng pointed to historical trends, reassuring that while crypto markets react to macroeconomic shifts, they have consistently demonstrated resilience over time.
Teng referenced the 2022 market downturn when Bitcoin briefly fell below $20K (AU$31K) due to aggressive Federal Reserve rate hikes and then quickly recovered alongside the crypto market as economic conditions stabilized.
He suggested that the current dip follows a similar pattern that aligns with short-term market corrections rather than a long-term reversal in trend:
“Institutional interest continues to rise. ETF inflows remain strong and new applications are filed regularly. Binance also continues to see steady inflows of new users. Market cycles come and go, but the fundamental indicators of crypto’s strength are getting stronger.”
Those ETF inflows, however, are not that strong. Data shows some conflicting trends in institutional sentiment as Bitcoin ETFs have accumulated a massive US$39.03B (AU$61.5B) in inflows, but recent days have seen major outflows, including US$539M (AU$850M) on February 24 and US$366M (AU$577M) on February 25.
Ethereum ETFs, which have gathered US$3.08B (AU$4.8B), are also under pressure, reflecting uncertainty among institutional investors regarding their crypto exposure.
Related: Ethena Secures US $100M Funding From Institutional Players Franklin Templeton, Dragonfly Capital
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