Bitcoin Erases Post-Election Gains in $2.7B Leverage Flush

Bitcoin erases post-election gains after $2.7B in liquidations push BTC from $126K peak to near $60K before stabilizing around $70K.

Bitcoin has erased all gains recorded after the November 2024 U.S. presidential election following a sharp selloff driven by heavy liquidations.

More than $2.7 billion in leveraged positions were wiped out within 24 hours, according to Wintermute.

The drop pushed BTC below $80,000 and later toward $60,000 before stabilizing near the $70,000 range.

$2.7B Liquidations Trigger Sharp Market Reset

The recent decline followed months of range-bound trading and rising speculative leverage.

Data shows that over 588,000 traders were liquidated during the flush. About 85% of those positions were leveraged longs.

Wintermute described the move as a full market reset. Bitcoin fell below $80,000 and briefly touched levels near $60,000.

The asset later rebounded toward the $67,000 to $71,000 range.

Bitcoin had peaked near $126,000 in October 2025 before the correction began.

As of February 11, 2026, prices have erased all post-election gains. The rapid drop reflected forced selling as margin calls accelerated.

ETF Outflows and Macro Pressures Weigh on BTC

Spot Bitcoin exchange-traded funds have recorded more than $6.2 billion in net outflows since November 2025.

These redemptions led to additional spot selling pressure. Institutional demand weakened during the same period.

Market sentiment shifted after Kevin Warsh was nominated as Federal Reserve Chair. His stance on rate cuts and balance sheet reduction contributed to a risk-off move.

Global equities and crypto assets declined alongside Bitcoin.

The Coinbase Premium also turned negative, signaling stronger U.S.-led selling. Analysts noted that leverage had built up during quiet price action.

When volatility returned, positions were unwound rapidly.

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Corporate Holdings and Broader Market Reaction

Corporate Bitcoin holders faced pressure as prices fell below key levels.

Strategy’s Bitcoin holdings briefly dropped under their average cost basis of $76,000. The company recorded unrealized losses exceeding $17 billion during the downturn.

Other major digital assets also posted steep weekly losses. Ethereum declined 22.4%, while Solana fell 25.2%. BNB dropped 23.4%, and the CoinDesk 20 Index fell more than 17%.

Capital rotation was observed toward artificial intelligence equities and the U.S. dollar.

The dollar strengthened as volatility increased across risk assets. Spot demand for Bitcoin remained thin during the recovery phase.

Bitcoin traded near $67,000 to $71,000 following the rebound. One BTC was valued at approximately Ksh 8,647,491.78 as of February 11, 2026.

Market participants continue monitoring leverage levels and institutional flows.

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