Crypto Markets Slide as Bitcoin Falls 2.5% and Liquidations Near $200 Million
Wednesday, Feb 18 2026 – Global crypto assets slipped amid heightened geopolitical risk and lingering U.S. domestic uncertainty. Bitcoin’s price slipped below $66,400, while leveraged positions were liquidated for almost $200 million.
Market snapshot
| Asset | Price / Metric | 24‑h change |
|---|---|---|
| Bitcoin (BTC) | $66,344 | –2.5 % |
| Ethereum (ETH) | $1,953 | –2.3 % |
| BNB | $610 | –2.0 % |
| XRP | $1.44 | –3.0 % |
| Solana (SOL) | $81 | –4.5 % |
| Total crypto market cap | ≈ $2.37 trillion | –2 % |
| Daily trading volume (CoinGecko) | ≈ $88.5 billion | – |
The decline was broad‑based: most large‑cap tokens posted losses, with Binance Coin, XRP and Solana falling the most. Small‑cap and niche assets also saw mixed performance; World Liberty Financial (WLFI) rallied 15.7 % after confirming participation in a high‑profile Wall Street forum, while Cosmos Hub (ATOM) and Provenance Blockchain (HASH) rose 6.2 % and 5 % respectively. Conversely, Pumpfun (PUMP), MemeCore (M) and Bittensor (TAO) each dropped double‑digit percentages.
Liquidity crunch
CoinGlass data show that leveraged positions were liquidated for $192 million in the past 24 hours. Long positions accounted for roughly $135 million of that figure, while short positions contributed about $57 million. Bitcoin led the liquidation tally with $66.7 million, followed by Ethereum at $53.7 million. More than 84,000 trader accounts were forced to close positions during the session.
ETF flows
Spot‑ETF activity reflected a divergent sentiment:
- Bitcoin spot ETFs recorded net outflows of $104.9 million.
- Ethereum spot ETFs attracted $48.6 million in net inflows.
- XRP spot ETFs were flat, while Solana spot ETFs saw modest inflows of $2.2 million.
The net outflow from Bitcoin ETFs underscores a short‑term risk‑off move, even as Ethereum continues to draw interest from retail and institutional investors.
Macro backdrop
The sell‑off coincided with escalating tensions in the Middle East and a partial shutdown of the U.S. Department of Homeland Security, factors that have recently weighed on risk‑sensitive assets. Washington’s White House offered no definitive timetable for renewed dialogue with Iran, maintaining geopolitical uncertainty. Concurrently, diplomatic talks between Ukraine and Russia have moved forward, while internal U.S. debates over the DHS reopening persist, according to CNN.
In the commodities arena, safe‑haven metals rose: gold hovered around $5,000 an ounce (+2 %), silver climbed to $77.49 (+4.3 %), platinum to $2,098 (+3.3 %), and palladium to $1,742 (+≈2 %). The metal rally reflects investors’ shift toward traditionally stable assets amid the same geopolitical strife affecting crypto markets.
Notable corporate moves
SEC filings revealed that Founders Fund, the venture capital arm linked to Peter Thiel, fully disposed of its 7.5 % stake in ETHZilla Corp., an Ethereum‑treasury company, during the prior year. While the exit was not directly tied to the day’s price action, it adds a layer of institutional sentiment surrounding Ethereum‑related infrastructure projects.
Analysis
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Geopolitical risk is back‑testing crypto resilience – The simultaneous drop in Bitcoin and Ethereum, combined with heightened long‑side liquidations, suggests that traders view the current escalation in the Middle East and domestic U.S. policy gridlock as a catalyst for risk aversion. The modest inflow into Ethereum ETFs may indicate a longer‑term belief in the platform’s fundamentals despite short‑term pressure.
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Liquidity pressure may amplify volatility – Nearly $200 million in forced closures, especially on the long side, points to a market environment where leveraged exposure is increasingly vulnerable. As prices slip further, additional liquidations could compound price declines, creating a feedback loop.
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ETF outflows signal short‑term capitulation – The sizable net withdrawal from Bitcoin spot ETFs underscores a shift toward cash or alternative assets, aligning with the broader move into precious metals. Continued outflows could further depress Bitcoin’s price, particularly if institutional inflows do not materialize.
- Selective upside in niche tokens – WLFI’s surge and modest gains in Cosmos and Provenance illustrate that project‑specific news (e.g., conference participation, platform milestones) can still generate price lift even in a down market. However, the gains are isolated and insufficient to offset the sector‑wide decline.
Key Takeaways
- Bitcoin and Ethereum fell 2‑3 %, pulling the total crypto market cap down 2 % to roughly $2.37 trillion.
- Liquidations approached $200 million, with longs bearing the bulk of the hits; more than 84 k traders were affected.
- Bitcoin spot ETFs saw over $100 million of net outflows, while Ethereum ETFs attracted nearly $50 million of inflows.
- Geopolitical tension and U.S. domestic uncertainty remain primary macro drivers of the risk‑off sentiment.
- Precious metals rallied, reinforcing a broader investor pivot to traditional safe‑haven assets.
- Project‑specific catalysts (e.g., WLFI forum participation, Provenance’s equity launch) produced isolated rallies but could not offset the market‑wide bearish tilt.
Investors should monitor further geopolitical developments, potential policy announcements from the White House, and any upcoming liquidity events that could exacerbate price swings. Maintaining prudent exposure and risk management—especially for leveraged positions—will be crucial as the market navigates the current uncertainty.
Source: https://thedefiant.io/news/markets/crypto-markets-fall-as-bitcoin-drops-2-5-and-liquidations-near-usd200-million
