Bitcoin Drops to $65,000 as Retail Panic Grows, But There Is A Catch ⋆ ZyCrypto
The post Bitcoin Drops to $65,000 as Retail Panic Grows, But There Is A Catch ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
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  Bitcoin (BTC) traded sideways on Friday following a volatile week that left the market on edge. Notably, over the past week, the world’s largest cryptocurrency has shed nearly 4%, reflecting persistent selling momentum. Despite the pullback, several analysts maintain that the broader trend remains intact and anticipate a potential rebound in the sessions ahead. Meanwhile, popular on-chain analytics firm Santiment highlighted the intensity of the drop, noting that Bitcoin plunged roughly 4.5% in just two hours, sliding to around $64,200 for the first time since early February. The sharp decline flushed out a wave of long positions, pushing Bitcoin’s open interest down to approximately $19.5 billion, less than half of the $38.3 billion peak recorded in mid-January. According to the analyst, the speed of the sell-off, combined with the late-weekend timing, amplified the shock effect, as liquidity is typically thinner and social media activity lower during that period. Nevertheless, amid the growing fear, there appears to be a twist. Analytic Santiment observed that negative sentiment across social platforms has surged to a two-week high. Historically, such spikes in retail pessimism have sometimes marked short-term bottoms. When smaller investors collectively enter “FUD mode,” markets have often staged relief rallies shortly afterward, driven by opportunistic buyers stepping in to capitalize on panic-driven discounts. Additionally, crypto analyst Coin Bureau underscores the mounting pressure on recent buyers. Since the October sell-off, short-term Bitcoin holders are estimated to be sitting on roughly $26 billion in unrealized losses. Should the price fall below $60,000, those paper losses could deepen toward $32 billion. Advertisement
  Such figures highlight the fragile positioning of late entrants who bought during previous highs and are now facing underwater portfolios. Furthermore, according to analyst Nehal, the market has erased massive value in a relatively short period, with…
Filed under: News - @ February 28, 2026 12:04 am