The cryptocurrency market has started the week under considerable pressure as global economic uncertainties and escalating trade tensions have unsettled investors. Bitcoin briefly dipped below the critical $65,000 mark, triggering a wave of online panic and concern. This latest downturn in the crypto realm appears to be driven more by worldwide economic narratives rather than intrinsic crypto factors.

Bitcoin’s Sudden Decline and Market Impact

On February 23, Bitcoin’s price plummeted to approximately $64,400 in a matter of hours, dragging major altcoins down with it and leading to a significant reduction in the overall market value by billions. The timing of this drop coincided with heightened tariff worries, following the announcement by the U.S. administration of a 15% increase in global import tariffs. This move amplified existing fears of a potential slowdown in economic growth.

Rising Anxiety Among Bitcoin (BTC) Investors

Investor sentiment has markedly declined as Bitcoin’s price hovers around the $65,000 threshold. Fear is becoming increasingly apparent across various market indicators. Data from Google Trends reveals a record spike in searches for “Bitcoin to zero,” indicating growing apprehension among retail investors.

Technical analysis reveals Bitcoin is struggling to hold onto key support levels due to intensified selling pressure. Spot trading volumes have seen a steep 59% decrease, curtailing liquidity and exacerbating price volatility. The derivatives markets mirror this caution, with open interest shrinking to $19.5 billion, which is nearly half of its peak in January.

Price charts suggest a potential further decline if support near $64,000 fails, with $60,000 emerging as a crucial lower target. The 20-day moving average around $68,278 and the lower Bollinger Band near $64,098 indicate a range-bound pressure, while mild outflows and clustered leveraged longs between $64,090 and $64,536 could trigger liquidations.

Macroeconomic Influences on the Crypto Landscape

Analysts attribute the recent sell-off to a blend of weakening economic indicators and a shift towards risk-off sentiment. U.S. housing data revealed a downturn in pending home sales, while currency markets responded to expectations of tighter monetary policy from the Bank of Japan, strengthening the yen and prompting global funds to reduce their leverage.

Furthermore, activity from cryptocurrency whales has exerted additional pressure. On-chain data indicates that large holders are moving their coins onto exchanges—a move typically associated with impending sales. Spot trading volumes also experienced a significant drop, suggesting limited liquidity to handle abrupt market movements.

The broader cryptocurrency market mirrored Bitcoin’s decline. Ethereum saw a reduction of roughly 5%, with other major tokens experiencing losses between 3% and 8%. Additional focus was placed on Ethereum after co-founder Vitalik Buterin sold millions of dollars worth of ETH, heightening concerns about short-term supply pressure.

Market participants now identify the $60,000 level as a crucial support zone. Analysts caution that a sustained breach below this level could trigger substantial liquidations, while a recovery above the mid-$60,000 range might help stabilize sentiment.

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