news.bitcoin.com
Bitcoin broke below the $63,000 support level as a broader Wall Street sell-off collided with mounting geopolitical tension. The decline follows renewed tariff threats from the U.S. President, fueling market-wide uncertainty and a retreat from risk assets.
Sentiment Hits Historic Lows
Bitcoin took a bruising on the morning of Feb. 24, 2026, sliding below the $63,000 support level. This volatility came on the heels of a brutal Wall Street session where the Dow Jones Industrial Average plummeted more than 700 points. The sell-off was reportedly and partly fueled by a viral report from Citrini Research warning that rapid artificial intelligence (AI) advancement poses an existential threat to white-collar employment, sparking a “scare trade” across tech and risk assets.
According to Bitstamp data, the leading cryptocurrency cratered to a low of $62,525, revisiting a critical threshold last tested during the Feb. 6 wipeout. While bitcoin managed a modest midday recovery to trade back above $64,000, the underlying sentiment remains fragile. The Crypto Fear and Greed Index collapsed to a value of 5, a historic low matched only a handful of times in the asset’s history.
Despite the intraday bounce, bitcoin remains down 4% over the last seven days and has shed 25% of its value over the past 30 days. Currently, bitcoin’s market capitalization hovers just under $1.3 trillion, while the broader crypto economy is valued at approximately $2.3 trillion.
A primary headwind throughout February has been the aggressive bleeding from spot exchange-traded funds. U.S. spot bitcoin ETFs have logged $3.8 billion in net outflows over the last five weeks, marking a significant shift from institutional accumulation to tactical de-risking. This trend showed no signs of abating as the final week of February began; the latest data from Feb. 23 confirmed an additional $203.82 million was pulled from these investment vehicles, stripping the market of the liquidity needed to sustain a meaningful rally.
Bitcoin’s rejection from its weekend high of $68,000 was further compounded by a legal and political firestorm following the U.S. Supreme Court ruling in Learning Resources Inc. v. Trump. President Donald Trump’s reaction injected immediate uncertainty into global markets. On Feb. 23, Trump claimed the ruling gave him the power to “do terrible things to foreign countries” that he believes have been “ripping us off for decades.” The U.S. leader’s bellicose rhetoric came as some analysts warned the ruling had severely weakened his hand, potentially complicating his upcoming visit to China.
Analysts at Bitunix assert that bitcoin has developed a “downward-shifting structure.” They say that with long-side liquidity partially flushed, a dense liquidation zone has emerged between $62,000 and $64,000, while overhead short positioning remains concentrated around $66,000.
“If a weaker dollar coincides with improving liquidity expectations, a short-term liquidity sweep to the upside may unfold,” the analysts said. “Otherwise, if tighter rate expectations persist, the structure is likely to remain characterized by weak consolidation and repeated tests of lower support. The core variable remains whether capital is willing to rebuild risk exposure amid macro uncertainty.”
FAQ ❓
- What happened to bitcoin? Bitcoin fell under $63,000 on Feb. 24, hitting $62,525 before a midday rebound.
- Where did the sell‑off start? Wall Street’s Dow Jones plunged over 700 points, sparking risk‑asset pressure.
- Why does it matter globally? The crash reflects fragile sentiment as U.S. ETF outflows and Trump’s Supreme Court reaction rattled markets.
- What’s next for traders? Analysts warn of a dense liquidation zone between $62K–$64K, with weak consolidation likely.