Bitcoin has fallen below the crucial support level of $63,000 amid a significant sell-off on Wall Street and escalating geopolitical tensions. This downturn follows renewed tariff threats from the U.S. President, contributing to widespread market uncertainty and a withdrawal from riskier assets.
Market Sentiment Plummets
On February 24, 2026, Bitcoin experienced a sharp decline, dropping beneath the $63,000 mark. This volatility coincided with a tumultuous trading session on Wall Street where the Dow Jones Industrial Average dropped over 700 points. The sell-off was partly triggered by alarming news from Citrini Research that highlighted how rapid advancements in artificial intelligence (AI) could threaten white-collar jobs, leading to heightened fears across technology and risk-sensitive investments.
Data from Bitstamp revealed that Bitcoin hit a low of $62,525—returning to levels last seen during the wipeout on February 6. Although it managed to recover slightly by midday and trade above $64,000 again, overall market sentiment remains precarious. The Crypto Fear and Greed Index plummeted to just 5—a historic low that has only been reached on rare occasions throughout its history.
Despite this brief recovery during the day’s trading session, Bitcoin is still down by 4% over the past week and has lost about 25% of its value in just one month. At present, Bitcoin’s market capitalization is nearly $1.3 trillion while the total cryptocurrency market stands at around $2.3 trillion.
A major challenge throughout February has been substantial outflows from spot exchange-traded funds (ETFs). U.S.-based spot bitcoin ETFs have reported net outflows totaling approximately $3.8 billion over five weeks—a notable shift away from institutional accumulation towards tactical de-risking strategies among investors. As February drew to a close without signs of improvement in this trend; data released on February 23 indicated an additional withdrawal of about $203 million from these investment vehicles—depleting liquidity essential for any significant price rally.
The rejection of Bitcoin’s weekend peak at around $68K was further exacerbated by legal controversies following a ruling by the U.S Supreme Court in Learning Resources Inc v Trump case which sparked immediate global market uncertainties due to President Trump’s reaction claiming newfound powers against foreign nations he believes have exploited America for years.
This aggressive rhetoric emerged as analysts cautioned that such developments might weaken his negotiating position ahead of an upcoming visit to China.
Experts at Bitunix note that Bitcoin appears trapped within what they describe as “a downward-shifting structure.” They observe that with long-side liquidity being partially drained away; there exists a dense liquidation zone between prices ranging from $62K–$64K while short positions are heavily concentrated near around price point near$66K.
“Should we see weaker dollar conditions coupled with improving liquidity expectations,” they stated “there may be potential for short-term upward movements.” Conversely if tighter interest rate expectations persist then weak consolidation will likely continue alongside repeated tests against lower support levels—the key factor being whether capital will return into risk exposure amidst ongoing macroeconomic uncertainties.”
Frequently Asked Questions ❓
What happened with bitcoin? On Feburary24th it dipped below$63k hitting62k525 before rebounding mid-day.
Where did this selling pressure originate? A steep drop exceeding700points occurred withinWall Street’sDowJones index.
Why does this matter globally? The crash indicates fragile investor sentiment stemmingfromU.S ETF withdrawalsandTrump’sSupremeCourt remarks shaking markets.
What should traders expect next? Analysts highlight dense liquidation zones between$62-64kwith continued weak consolidation likely ahead.