The cryptocurrency markets experienced a significant downturn as Bitcoin fell by 2.5%, trading at $66,344. This decline occurred on February 18, amid rising geopolitical tensions in the Middle East and ongoing issues related to the partial shutdown of the Department of Homeland Security. Ethereum also saw a dip of 2.3%, settling at $1,953.
In a notable development, the Founders Fund, linked to billionaire Peter Thiel, revealed in a recent SEC filing that it had completely divested its 7.5% stake in ETHZilla Corp, a company associated with Ethereum.
Other prominent cryptocurrencies followed suit, with BNB decreasing by 2% to approximately $610, XRP dropping 3% to $1.44, and Solana (SOL) declining 4.5% to $81. The overall cryptocurrency market capitalization stood at $2.37 trillion, reflecting a 2% decrease over the last 24 hours. Daily trading volume was reported at $88.5 billion, according to CoinGecko.
Despite the overall market decline, several tokens managed to gain traction. World Liberty Financial (WLFI) surged by 15.7% following announcements that top Wall Street CEOs will participate in the upcoming World Liberty Forum. Additionally, Cosmos Hub (ATOM) and Provenance Blockchain (HASH) saw increases of 6.2% and 5%, respectively. The rise of HASH coincided with news that pricing had officially closed for FGRD, the first public equity trading on the Provenance blockchain.
On the negative side, pumpfun (PUMP) fell approximately 11%, while MemeCore (M) and Bittensor (TAO) dropped by 7% and 6.3%, respectively.
Liquidation events have been prevalent, with around $192 million in leveraged crypto positions liquidated over the past day, as reported by CoinGlass. Long positions accounted for about $134.6 million of these liquidations, while shorts made up $57.4 million. Leading the way in liquidations, Bitcoin faced around $66.7 million, followed closely by Ethereum at approximately $53.7 million, impacting over 84,000 traders.
In the exchange-traded fund (ETF) sector, Bitcoin spot ETFs experienced net outflows of $104.87 million, while Ethereum spot ETFs recorded $48.63 million in net inflows. XRP spot ETF flows remained stable, and Solana spot ETFs noted inflows of $2.19 million.
In contrasting market segments, precious metals saw gains, with gold trading near $5,000, up 2%, while silver rose 4.3% to $77.49. Platinum increased by 3.3% to $2,098, and palladium added nearly 2% to $1,742. Political uncertainties continue to loom, especially as discussions regarding Iran remain ambiguous amid escalating tensions in the region.
Simultaneously, negotiations between Ukraine and Russia have wrapped up with expectations for further dialogue. Political strife in Washington persists regarding the reopening of the Department of Homeland Security, which remains partially shut down, according to reports.
