Given the massive volume of sales that led to such a sharp decline, it is not surprising that financial institutions managing spot Bitcoin ETFs are disposing of cryptocurrency at record speeds. On February 25 alone, nearly $940 million exited the market.
Is Bitcoin ready for a recovery after the mass sell-off?
The largest seller of the day was the Fidelity Wise Origin Bitcoin Fund (FBTC), which sold over 3,770 BTC for nearly $345 million. Even VanEck Bitcoin (HODL), which sold the smallest amount, disposed of 109 BTC worth $10 million.
Despite the record sales volume, some investors hope that this pressure will push BTC into the "oversold" zone, leading to a rebound.
The world's leading cryptocurrency still holds out hope that the sharp decline, which wiped out over $300 billion from the total market capitalization of digital assets, has come to an end. On February 26, BTC fluctuated between $88,000 and $89,000 but failed to sustain its upward movement.
Some investors, particularly Cas Abbé, noted on X that BTC typically finds a local bottom fairly quickly after mass ETF sell-offs. However, history shows that this is not always the case.