Bitcoin Whale Loses $8.84M on Hyperliquid as BTC Drops Below $90K

YEREVAN (CoinChapter.com) — A Bitcoin whale lost $8.84 million after holding a leveraged BTC position on Hyperliquid. The trader went long on BTC at $101,663 two months ago but suffered liquidation after Bitcoin’s price dropped below $90,000.

Data from Lookonchain shows the whale’s account had 13.97 million USDT before the loss. In addition to the liquidation, the trader accumulated $2.16 million in funding fees, increasing the total loss.

Other Bitcoin traders using leverage have faced similar liquidations as market volatility increases. The BTC price drop triggered large liquidations across major crypto exchanges.

Bitcoin Price Falls Below $90K, Triggers Liquidations

Bitcoin’s price declined to $88,245, marking its lowest level since November 2024. The drop represented a 6% decrease on February 25, 2025. According to the TradingView chart, Bitcoin is currently trading at $89,470.

Ethereum (ETH) followed the decline, falling to $2,397, according to the TradingView chart. The price reached a low of $2,393 during the latest session, marking a significant decline.

The chart shows that ETH previously traded above $3,400 before entering a downtrend.

Bitcoin Drops Below $90K, Analysts Warn of Potential $70K Retest

Bitcoin lost its $90,000 support during early Asian trading hours on February 25, raising concerns about a deeper correction toward $70,000.

In an X post, AlphaBTC noted that if Bitcoin continues its decline into the mid-$80,000 range, there is little to stop it from dropping to the low $70,000s.

The sentiment was echoed by Michael van de Poppe, founder of MN Capital, who urged traders not to panic, emphasizing that Bitcoin needs to clear liquidity below $90,000 before reversing upward. He pointed to the $83,000–$87,000 zone as a potential bottom, arguing that the extreme bearish sentiment could indicate an upcoming shift.

Meanwhile, CoinGlass data shows growing liquidity buildup in the mid-$80,000 range, a key level that could influence Bitcoin’s next move. If downward pressure persists, traders may face additional liquidations, further driving volatility. As the market struggles with uncertainty, analysts remain divided on whether Bitcoin can recover or if a retest of $70,000 is imminent.

Bitcoin Investors React to Losses

The Spent Output Profit Ratio (SOPR) indicator for short-term holders is failing to stay above 1.0. A reading below this level indicates that STHs are selling at a loss, which could lead to increased sell pressure.

If the SOPR remains below 1.0, more short-term investors may liquidate their holdings, adding downward pressure on Bitcoin’s price.

Bitcoin Exchange Activity Shows Limited Sell-Offs

Despite the market crash, exchange data suggests that there has been no major BTC sell-off. Over the past 24 hours, 157 BTC worth approximately $14 million left exchanges, indicating that many traders are holding their assets.

Exchange netflows typically rise during high volatility, but the limited withdrawals suggest that some investors may be waiting for a rebound.

Key Factors Behind Bitcoin’s Price Decline

Several factors contributed to Bitcoin’s price drop, with geopolitical uncertainty and economic concerns weighing heavily on the market. Since the inauguration of U.S. President Donald Trump in mid-January, global trade tensions have escalated, creating short-term instability. The ongoing tariff trade wars have fueled market uncertainty, leading to a decline in capital inflows into Bitcoin and related products.

Data from Glassnode shows that crypto market net inflows dropped from $52 billion to $26.5 billion in just 10 days. The decline in U.S. spot Bitcoin ETFs has further pressured the market, with two consecutive weeks of cash outflows totaling $559 million. The slowdown in institutional investments has weakened bullish sentiment, adding to the overall market downturn.

Meanwhile, security concerns have also played a role. The Bybit hack, where $1.5 billion was stolen, has raised doubts about Web3 security, particularly among institutional investors. The breach primarily affected Ethereum holdings, increasing selling pressure on ETH. Despite a favorable regulatory environment in the United States, the fear of further  cyberattacks on crypto exchanges has reduced investor confidence.

The post Bitcoin Whale Loses $8.84M on Hyperliquid as BTC Drops Below $90K appeared first on Coinchapter.
%%featured_image%%