Bitcoin's Dip Under $65K Pushes Crypto Liquidations to $500M
Decrypt
by Akash GirimathFebruary 23, 2026
AI-Generated Deep Dive Summary
Bitcoin experienced a sharp decline, dropping from $67.6K to $64.4K in just two hours, which triggered over $500 million in liquidations across cryptocurrency markets. This sell-off was primarily driven by macroeconomic factors rather than specific crypto-related news. Bitcoin and Ethereum positions accounted for nearly 70% of the total liquidations, highlighting the vulnerability of leveraged positions during market volatility.
The downturn was attributed to rising policy uncertainty, including fluctuations in U.S. tariff policies and geopolitical tensions. The U.S. Supreme Court’s ruling on Trump-era tariffs added to this instability, despite being declared illegal. These factors have forced risk assets like Bitcoin to reprice, underscoring its position as a high-risk investment rather than a safe haven.
Institutional capital continues to treat crypto assets as "risk assets" tied to broader market sentiment. This is evident in the simultaneous drop in crypto markets and a slight increase in gold prices, which are often seen as safer investments during periods of uncertainty. The decline reflects a broader contraction in risk appetite, driven by sticky inflation, geopolitical tensions, and rising interest rate expectations.
Looking ahead, experts suggest that Bitcoin’s recovery will depend on macroeconomic signals stabilizing. This includes factors like inflation trends, energy prices, geopolitical developments, and the stability of traditional risk assets. With limited inflows due to increased uncertainty, the crypto market is expected to face a prolonged period of adjustment.
For readers interested in crypto, understanding Bitcoin's sensitivity to macroeconomic factors is crucial. The current environment highlights how crypto markets are influenced by global economic conditions, making them inherently volatile and tied to broader financial trends. This insight is essential for investors seeking to navigate the risks and opportunities in the cryptocurrency space.
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Originally published on Decrypt on 2/23/2026