Bitcoin Plummets Under $63K as Risk-Off Mood Grips Markets

thecryptobasic.com 24 February 2026 09:52, UTC

Bitcoin

Bitcoin fell below the $63,000 mark on Tuesday, extending losses from the previous session as investor anxiety deepened across global markets.

The decline comes amid renewed trade tensions and a broader shift away from risk-sensitive assets, both of which have weighed heavily on cryptocurrencies and equities alike.

At the time of writing, Bitcoin was trading near $63,073, down roughly 8% over the past week. Moreover, prices are now approaching levels last seen on February 6, when the cryptocurrency briefly hit $60,000. This steady deterioration has thus heightened concern that the current pullback may not yet be complete.

Key Points

Bitcoin fell below $63,000, approaching the critical $60,000 technical support level.
Investor sentiment deteriorated sharply, with the Crypto Fear & Greed Index dropping to “extreme fear.”
Trade tensions escalated after Donald Trump imposed a temporary 15% tariff, pressuring risk assets globally.
Analysts warn that a sustained break below $60,000 could trigger a deeper correction toward $50,000.
Leveraged liquidations surged to $381.89 million, reflecting heavy unwinding of bullish positions.

Market Sentiment Turns Sharply Defensive

Investor caution is clearly reflected in sentiment indicators. The Fear & Greed Index has dropped to 8, a level classified as “extreme fear,” signaling widespread reluctance to take on risk.

Bitcoin Fear and Greed Index

This defensive posture extends beyond digital assets. U.S. equities also declined after President Donald Trump announced a temporary 15% tariff on imports, up from an earlier 10% proposal. The adjustment followed a Supreme Court ruling that invalidated his previous tariff framework, injecting fresh uncertainty into global trade policy.

At the same time, investors trimmed positions in companies viewed as vulnerable to disruption from artificial intelligence. This broader reassessment of risk has weighed on speculative assets, including cryptocurrencies.

In a media statement, Matt Howells-Barby, vice president at Kraken and host of Trading Spaces, noted that Bitcoin’s pullback mirrors the weakness in equities. He added that the move is driven by renewed tariff uncertainty and rising geopolitical tensions, drawing comparisons to conditions seen in April 2025.

According to him, the $60,000 level now represents a critical technical support zone. A sustained break below that threshold could open the door to a deeper correction, potentially pushing prices into the mid-to-low $50,000 range.

Technical Signals Show Downside Risk Isn’t Over

Beyond macro pressures, technical indicators suggest the market may not have yet found a solid bottom. In past cycles, Bitcoin formed lasting lows only after its 50-week moving average dropped below the 100-week average — a pattern known as a bear cross.

This happened at the end of the 2018 and 2022 downturns. But so far, the 50-week average is still above the 100-week average, meaning the crossover hasn’t happened.

At Consensus Hong Kong, several analysts said that if history repeats, Bitcoin could fall toward $50,000 or lower before a final capitulation.

However, the bear cross is a lagging indicator. It doesn’t predict future moves — it confirms trends that are already underway. For now, traders are closely watching price action and moving averages for clues about the market’s next move.

Bitcoin Price Chart

Liquidations Accelerate as Leveraged Positions Unwind

The sell-off has also triggered significant forced liquidations in derivatives markets. According to CoinGlass data, total liquidations reached $381.89 million over the past 24 hours.

Long positions accounted for $288.99 million of that figure, while short positions made up $92.90 million. This imbalance suggests bullish traders bore the brunt of the latest sell-off.

Weakness was not limited to Bitcoin. The broader cryptocurrency market fell approximately 3% over the same period, reducing total market capitalization to around $2.6 trillion.

Major tokens followed suit, with Ethereum falling 2.6% to $1,824, Solana dropping 2.4% to $76.57, and XRP declining 2% to $1.33.

Taken together, these developments highlight a market under mounting pressure from both macroeconomic uncertainty and fragile investor sentiment. With key technical levels approaching and volatility elevated, traders are closely monitoring whether Bitcoin can stabilize or whether further downside remains ahead.