Key Insights:
- The crypto market was down 5% on Feb. 23, as Bitcoin fell to $64,700 following Trump’s announcement of a 15% global tariff.
- Forced liquidations reached $240 million in just 60 minutes as thin Monday liquidity amplified the leverage cascade.
- The Fear and Greed Index hit extreme fear at 5 to 14 as Bitcoin fell 44% from its October 2025 peak.
A sharp crypto market sell-off dominated headlines on Feb. 23, 2026, as Bitcoin dropped from around $67,000 to $64,700 over the weekend. Ethereum performed worse, falling over 5% to trade near the $1,877 to $2,000 range.
The total cryptocurrency market value shrank to approximately $2.3 trillion. Fear dominated, with the Fear and Greed Index plunging to extreme territory between 5 and 14 out of 100. This was not a small dip but a serious panic showing in the numbers.
Trump Tariff News Triggered Risk-Off Rotation
US President Donald Trump announced plans this weekend to raise global tariffs to 15%. This news hit markets on Monday. Stocks dropped. Technology shares fell.
The crypto market’s downward movement crashed harder than most assets because digital currencies act as high-risk investments. When fear spreads, investors sell risky things first and buy safer options like government bonds or gold.
The selling started during these thin Monday morning trading hours. Weekends typically see very low trading volume in cryptocurrency markets.
Most big investors reduce activity on Saturday and Sunday. When Monday opened, the selling pressure from Trump’s tariff announcement met almost no buying support. Small sell orders created huge price drops because nobody wanted to buy.
Bitcoin traded around $67,000 through the weekend. Within hours, it crashed through $66,000 support, then $65,000. Each level that broke triggered more automatic selling from people who set stop-loss orders.
A stop-loss is an order that instructs your exchange to sell coins if the price drops to a certain level. When thousands trigger at once, it creates a waterfall where selling causes more selling.
$240M Liquidated in 60 Minutes As Leverage Trap Springs
The worst damage came from forced liquidations, hitting $240 million in just 60 minutes. A liquidation happens when someone borrows money to buy more crypto than they can afford. This is called leverage trading.
If you have $1,000, you might borrow $9,000 more to control $10,000 worth of Bitcoin. This amplifies gains when the price rises, but also magnifies losses when the price falls.
When Bitcoin fell from $67,000 to $64,700, that represents a roughly 3.4% decline. For someone using 10 times leverage, that same move means a 34% loss on their account. The exchange automatically sells its position to cover its borrowed funds.
Total liquidations over the past few days reached $2 billion to $4 billion, according to CoinGlass data.
When it drops fast, that means forced selling happened. People got kicked out of trades whether they wanted to or not. The crypto market’s downward pressure fed on itself as each liquidation caused lower prices, triggering more liquidations.
Many traders held long positions, betting prices would go up using 10x, 20x, or even 100x leverage.
A 1% price drop at 100x leverage wipes out entire accounts. The Monday morning move of over 3% destroyed accounts using high leverage. Social media is currently filled with posts about people losing thousands in minutes.
Thin Liquidity and Technical Breaks Pushed the Crypto Market Down
Several factors combined to make the situation worse than normal. Weekend liquidity was already low. Monday morning sessions have less volume than US afternoon trading. The tariff news hit during this vulnerable window.
Bitcoin was testing critical support near $65,000 to $66,000. When the price broke below this, it triggered technical selling from chart watchers. Many placed stop-losses just under this support, expecting it would hold. When it failed, selling accelerated.
Bitcoin is now down 44% to 49% from the October 2025 peak near $126,000. The current price of around $64,700 represents one of the biggest crashes in history. Year-to-date 2026, Bitcoin fell 23% to 30%, making this the worst start to any year recorded.
Institutional investors pulled billions from Bitcoin ETFs in recent weeks. Mining companies like Bitdeer sold holdings to zero. Long-term holders realized over $22 billion in losses. All of this created an environment where bad news sparked major selling, and that is exactly what the crypto market down event on Feb. 23 delivered.
