Bitcoin (BTC) Falls Below $65,000 Amid Fresh Tariff Uncertainty
We’ve seen Bitcoin (BTC) break below a key price level this week. On February 23, 2026, BTC slid under $65,000, its lowest point in weeks. This move shocked many traders. The drop was partly driven by new tariff uncertainty tied to U.S. trade policy. These developments have put risk assets under pressure, and BTC has been no exception. Even though Bitcoin is often touted as a hedge against economic shifts, its price behavior shows how connected it has become to broader markets.
What Happened: Breakdown Below $65K
- Price Drop (Feb. 23): BTC fell 4–5% in early Asian trading on Monday, Feb. 23, sliding to $64,300–$65,000. This marks its lowest level since early February.
- Market Reaction: Ethereum and major altcoins also declined during the same session. The drop was broad across crypto.
- Liquidation Shock: Nearly $360 million in long crypto positions were wiped out within about one hour. Heavy leverage amplified the fall.
- Trigger Point: Renewed U.S. tariff signals sparked risk-off sentiment across global markets.
Tariff Uncertainty: The Macro Trigger
- Policy Update: President Donald Trump signaled plans to raise global tariffs to around 15%. Markets reacted quickly.
- Investor Reaction: Risk assets sold off as traders reduced exposure to volatility.
- Why Tariffs Matter: Higher tariffs can slow global trade and increase costs for businesses and consumers.
- Macro Link: BTC moved in line with broader risk sentiment, similar to equities and commodities.
- Key Insight: Bitcoin is currently reacting more to global trade headlines than crypto-specific news.
Hedge or Risk Asset: The Debate
- Digital Gold View: Some investors see BTC as a hedge during economic stress.
- Risk Asset Reality: Recent price action shows BTC moving closely with tech stocks.
- Correlation Trend: When macro fears rise, BTC often drops alongside equities.
- Short-Term Behavior: During geopolitical or trade tensions, BTC behaves more like a speculative asset.
- Takeaway: In the current cycle, BTC is trading with risk appetite, not against it.
Technical Analysis: Key Levels to Watch
- Breakdown Level: The move below $65,000 is technically significant.
- Immediate Support: BTC must hold $63,800–$64,300 to avoid deeper selling.
- Next Supports: If weakness continues, $62,000 and $60,000 are key downside targets.
- Resistance Zone: A move back above $68,500–$69,000 could restore short-term bullish momentum.
- Volatility Risk: Losing major support levels can trigger algorithmic selling and forced liquidations.
Market Sentiment & Liquidations
- Fear Indicator: The Crypto Fear & Greed Index has shifted toward extreme fear.
- Leverage Impact: Many traders used high leverage before the drop.
- Cascade Effect: Automatic liquidations intensified the selling pressure.
- Volatility Pattern: BTC is reacting sharply to macro headlines, leading to fast price swings.
- Current Mood: Sentiment remains fragile as investors watch global trade developments.
Broader Crypto Market Reaction
- Ethereum Move: ETH dropped roughly 5% alongside BTC’s decline.
- Altcoin Weakness: Solana, XRP, and other major altcoins followed the same trend.
- Market Cap Drop: Total crypto market capitalization declined as traders reduced exposure.
- Sector Insight: The sell-off shows the entire crypto ecosystem is sensitive to macro shocks.
What Could Happen Next
- Scenario 1, Rebound: If tariff fears ease, BTC could reclaim $68,000 and target $70,000.
- Scenario 2, Deeper Pullback: Continued uncertainty may push BTC toward $60,000 support.
- Scenario 3, Sideways Range: BTC could consolidate between $62,000–$68,000 as markets digest news.
- Upcoming Catalysts: Economic data releases, central bank comments, and geopolitical updates will likely drive the next move.
- Key Watchpoint: BTC remains highly sensitive to macro headlines in the current environment.
Conclusion
We saw BTC slip below $65,000 this week amid renewed tariff uncertainty and broader macro risk. While some see Bitcoin as a hedge against instability, its recent behavior shows it often reacts like a risk asset, especially in the short term. Key levels like $65,000 and below will be critical in the days ahead. If BTC can reclaim resistance levels and macro news improves, a rebound is possible. But if risk aversion deepens, deeper support tests may follow.
For now, investors and traders alike are watching the macro environment closely. In markets this sensitive to news, a single policy update or economic data point can shift sentiment quickly, and BTC will likely move with it.
FAQS
BTC dropped below $65,000 due to renewed tariff uncertainty and rising macroeconomic risks. Investors reduced exposure to volatile assets, leading to selling pressure and liquidations.
Right now, BTC is behaving more like a risk asset. It is moving in line with stocks during macro uncertainty instead of acting like traditional safe havens such as gold.
The next important support levels for BTC are around $62,000 and $60,000. If selling pressure continues, these zones could be tested.
Yes, BTC could rebound if tariff fears ease and market sentiment improves. A move back above $68,000 would signal renewed strength.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.