Bitcoin erased its weekend profits, tumbling sharply from a peak of $68,600 down to a low near $64,161. This steep reversal was triggered by economic uncertainty following U.S. President Trump’s announcement of a sweeping 15% tariff on imports.
The Weekend Rally Collapses
On Monday, February 23rd, Bitcoin’s recent surge came to an abrupt halt as the leading cryptocurrency gave back all its gains and dropped below $64,200. The market reacted negatively to two major shocks: a U.S. Supreme Court decision regarding tariffs and President Donald Trump’s aggressive declaration of new import taxes.
Just two days earlier, optimism was high with Bitcoin climbing above $68,600 amid investor enthusiasm over the Supreme Court ruling. However, this positive sentiment quickly faded late Sunday when Trump criticized the judiciary’s verdict and threatened additional tariffs—escalating tensions between the U.S. and Europe.
The decline started gradually but accelerated dramatically around 7 p.m. EST on February 22nd. Within just two hours, Bitcoin lost more than $3,000 in value reaching an intraday bottom at approximately $64,258 before settling near $64,161 by midday Monday (12:55 p.m. EST). Even Strategy’s announcement of purchasing nearly $40 million worth of Bitcoin failed to reverse the downward momentum.
This bearish trend is further reinforced by institutional investors pulling out funds en masse from spot bitcoin exchange-traded funds (ETFs), which have now experienced five consecutive weeks of net withdrawals totaling roughly $3.8 billion—$316 million alone last week.
Adding to concerns are reports that BlackRock transferred over 1,100 BTC tokens onto Coinbase—a move often seen as preparation for large-scale sales or client redemptions according to blockchain analysts monitoring on-chain activity.
A particularly alarming factor is news about a Satoshi-era whale reportedly offloading around 11,300 BTC coins recently—a transaction yet unconfirmed officially but coinciding with increased sell orders during Asian and European trading sessions.
Meanwhile, as prices hovered near daily lows, approximately $39.5 million worth of long positions were liquidated within four hours. In total, $238 million in long bets were wiped out across Bitcoin in one day while leveraged positions throughout crypto markets exceeded $590 million losses.
Frequently Asked Questions ❓
What caused bitcoin's sharp drop?
The plunge followed fresh threats from President Trump imposing new tariffs that unsettled global financial markets.
How severe was bitcoin's decline?
Prices fell more than $3,000 within just two hours, sinking beneath $64,200.
Did institutional investors influence this movement?
Yes, $316 million exited spot ETFs last week alone, cumulatively amounting $3.&8 billion withdrawn over five weeks.
Were large holders involved?
Reports indicate that an early-era Satoshi wallet sold off about 11,300 BTC coins adding significant selling pressure.