Bitcoin Erases Trump-Era Gains as $2.7B Liquidations Hit

• Bitcoin plunged below $80K after $2.7B liquidations unwound leverage built during months of consolidation.

• U.S. selling dominated as Coinbase premium stayed negative and spot Bitcoin ETFs saw $6.2B net outflows.

• Capital rotation into AI stocks drained crypto liquidity while ETF pressure and weak spot demand weighed prices.

Bitcoin has dipped as heavy liquidations erased all gains recorded after Donald Trump’s November 2024 election. The selloff unfolded across global crypto markets and intensified on February 9, 2026. According to Wintermute, leverage unwound rapidly after macro shocks triggered a delayed risk-off move, pushing Bitcoin below $80,000 for the first time since April 2025.

Sharp Selloff Follows Macro Shocks and ETF Pressure

According to Wintermute’s February 9 market update, Bitcoin fell from range-bound levels and briefly touched $60,000 before rebounding into the low $70,000s. Over $2.7 billion in liquidations hit as leveraged positions built during months of consolidation unwound. Notably, Bitcoin now trades about 50% below its October all-time high of $126,000.

Several events converged to trigger the move. These included Warsh’s Federal Reserve chair nomination on January 30, weak Magnificent Seven earnings, and a sharp precious metals correction. Microsoft shares dropped 10%, while silver lost 40% in three days. Markets processed these shocks slowly, then rotated broadly into risk-off positioning.

ETF activity also shaped price action. IBIT traded over $10 billion in notional volume on Thursday, underscoring the growing role of spot Bitcoin ETFs. However, forced selling linked to redemptions added pressure during declining prices.

U.S. Selling Dominates as Institutional Demand Fades

Spot market data showed persistent U.S. selling throughout the decline. Wintermute reported that the Coinbase premium remained negative during the entire move, indicating sustained domestic selling pressure. Internal OTC data confirmed that U.S. counterparties sold heavily all week.

At the same time, spot Bitcoin ETFs recorded roughly $6.2 billion in cumulative net outflows since November. This marked the longest outflow streak since ETF launch. IBIT emerged as both the largest holder and the largest source of incremental supply during redemptions.

Derivatives markets also reflected stress. IBIT and Deribit now account for nearly half of crypto options activity. Investors appeared complacent after compressed volatility before the washout.

AI Capital Rotation Weighs on Crypto Performance

Wintermute noted that capital rotation toward artificial intelligence stocks continued to drain liquidity from crypto. A widely shared chart showed Bitcoin tracking software stocks closely. However, AI-focused names absorbed most available capital.

When AI stocks are removed from the Nasdaq, crypto’s negative skew largely disappears. Until ETF flows reverse and the Coinbase premium turns positive, Wintermute reported that spot demand remains limited.