NEW YORK, February 22, 2026 – Bitcoin, the world’s leading cryptocurrency, tumbled more than 5 percent on Monday, dipping below the $65,000 threshold for the first time since early February, as President Donald Trump’s announcement to raise global tariffs to 15 percent sparked widespread risk aversion across financial markets. The sharp decline erased billions in market value and underscored growing investor concerns over trade policies, geopolitical tensions, and economic uncertainty, pushing the digital asset’s price to around $64,700 by midday trading.
The drop came amid heavy selling pressure from large holders, known as whales in cryptocurrency circles, who moved significant amounts of Bitcoin onto exchanges over the weekend. This activity coincided with realized losses from buyers who entered the market during recent highs, exacerbating the downward momentum. Market analysts attributed the slide to a combination of factors, including the tariff news, which rattled equities and commodities alike, and lingering worries about U.S. Federal Reserve policies under nominee Kevin Warsh.
Bitcoin’s price had been consolidating in a range between $65,729 and $71,746 since February 7, but the breach of the lower boundary signaled potential for further corrections. Trading volume surged to over $31 billion in the past 24 hours, reflecting heightened activity as investors repositioned their portfolios. The cryptocurrency’s market capitalization stood at approximately $1.3 trillion, down from peaks above $2 trillion just months earlier.
President Trump’s tariff decision, announced late Sunday, aimed to protect domestic industries but immediately triggered sell-offs in risk-sensitive assets. Bitcoin, often viewed as a barometer for speculative sentiment, bore the brunt alongside other digital currencies like Ethereum and Ripple, which fell 5.3 percent and 5.2 percent respectively. Stock markets in Asia and Europe opened lower, with U.S. futures pointing to a rocky start on Wall Street.
Experts pointed to the interconnectedness of global markets as a key amplifier of the decline. “The tariff hike introduces a layer of uncertainty that investors hate, especially in an already fragile recovery environment,” said Matthew Sigel, head of digital assets research at VanEck, a New York-based investment firm. Sigel noted that Bitcoin’s drawdown mirrored orderly deleveraging rather than outright panic, but warned that sustained pressure could test lower support levels.
Geopolitical developments added fuel to the fire. Trump’s recent signals about potential military actions against Iran, coupled with U.S. buildup in the Middle East, have heightened fears of oil price spikes and broader economic disruptions. These elements compounded existing pressures on Bitcoin, which has been in a six-week losing streak, marking its longest such period in recent history.
The cryptocurrency’s trajectory has been volatile since hitting an all-time high of $126,198 in October 2025, fueled by regulatory optimism and institutional adoption. That peak came on the heels of the Genius Act’s passage, which facilitated stablecoin growth and boosted market confidence. However, the subsequent months saw a 50 percent retracement, with prices bottoming near $60,000 earlier this month amid overleveraging in derivatives markets.
Analysts from Bloomberg highlighted that the global crypto market has shed $2 trillion in value since its October 2025 zenith, with $800 billion lost in the past month alone. This erosion reflects a shift in investor preferences toward more stable assets like gold and artificial intelligence stocks, as well as concerns over quantum computing risks to blockchain security.
Institutional players have not been immune. Bitcoin exchange-traded funds experienced a historic five-week outflow streak totaling $3.8 billion, according to CoinDesk data. This reversal from earlier inflows underscores a cooling in Wall Street’s enthusiasm, though some firms remain bullish on long-term prospects.
“We’ve seen this pattern before where short-term shocks give way to recovery as fundamentals reassert themselves,” remarked Brad Garlinghouse, CEO of Ripple, in a statement to Reuters. Garlinghouse expressed optimism about pending legislation like the Clarity Act, which could provide regulatory frameworks to attract trillions in sidelined capital. He estimated a 90 percent chance of the bill passing by April, potentially stabilizing markets.
Similarly, Bernstein analysts maintained their $150,000 year-end target for Bitcoin, calling the current dip the “weakest bear case” in history. They cited expected inflows of $150 billion into Bitcoin and related stocks by March, driven by clearer U.S. policies. Economist Timothy Peterson echoed this sentiment, forecasting a potential rise to $122,000 by year’s end, implying an 82 percent gain from current levels.
Yet, not all views are rosy. Technical indicators suggest vulnerability. The relative strength index for Bitcoin hovered near 31, approaching oversold territory and indicating strong bearish momentum. Moving average convergence divergence lines showed convergence, pointing to market indecision but leaning toward further downside if support fails.
FXStreet’s analysis warned that a daily close below $65,729 could propel Bitcoin toward $60,000, a key psychological and technical support. If breached, deeper corrections to $56,000 might ensue, especially if leverage continues to unwind. On-chain data from Glassnode revealed increased whale selling and losses locked in by short-term holders, adding to the bearish case.
The broader economic backdrop plays a pivotal role. The U.S. dollar’s teetering strength, amid Fed deliberations, has influenced crypto valuations. Trump’s pro-crypto stance during his campaign had initially buoyed prices, but policy implementations like tariffs have introduced contradictions. “Regulation is key to unlocking the next wave of adoption,” said Kevin O’Leary, investor and Shark Tank star, in an interview with Forbes. O’Leary emphasized that compliant frameworks could position crypto as the economy’s 12th sector, drawing in institutional funds currently on the sidelines.
Internationally, reactions varied. In Europe, where Bitcoin trading volumes remain robust, regulators watched the drop closely, with the European Central Bank issuing cautions about volatility. Asian markets, particularly in China and Japan, saw amplified declines due to tariff sensitivities, as these regions rely heavily on U.S. trade.
Historical parallels offer context. Bitcoin’s 2022 crash, triggered by similar macroeconomic pressures, saw prices plummet over 70 percent before recovering. The 2025 bull run, sparked by ETF approvals and halving events, pushed valuations to new heights, but overleveraging led to the current pullback. Market cycles, as tracked by CoinMarketCap, show Bitcoin in a corrective phase, with potential for rebound if external shocks subside.
Community sentiment, gauged by Google trends, reached extremes. Searches for “Bitcoin to zero” spiked to record highs in the U.S., often a contrarian indicator of bottoms, though mixed signals persist. Social media platforms buzzed with debates, from doomsday predictions to calls for buying the dip.
Looking at supply dynamics, Bitcoin’s circulating supply neared 20 million coins, with mining difficulty adjusting to recent hashrate changes. The upcoming halving in 2028 looms as a long-term catalyst, but near-term focus remains on policy developments. The Clarity Act, following White House-mediated talks between crypto firms and banks, could resolve stablecoin issues and foster growth.
Coinbase CEO Brian Armstrong hailed the progress as a “win-win-win” for industry, banks, and consumers, potentially becoming law by spring. Goldman Sachs CEO David Solomon supported the bill, advocating for a rules-based system and urging non-compliant entities to exit the market.
Amid the turmoil, some sectors showed resilience. Stablecoins like USDT maintained pegs, providing havens for traders. Decentralized finance protocols saw increased activity as users sought yields outside traditional exchanges. However, overall crypto market cap dipped below $2 trillion, a stark contrast to last year’s highs.
Environmental concerns resurfaced with the price drop. Bitcoin’s energy-intensive mining drew criticism from green advocates, especially as global energy prices rose amid Middle East tensions. Proponents countered with shifts toward renewable sources, citing data from the Cambridge Centre for Alternative Finance showing over 50 percent sustainable energy usage.
Retail investors, reeling from the slide, faced decisions on holding or selling. Educational resources from outlets like BBC and The Guardian emphasized diversification and long-term perspectives, warning against emotional trading. Stories of early adopters who weathered past crashes provided inspiration, highlighting Bitcoin’s decade-plus track record of resilience.
Government responses added layers. The U.S. Treasury’s holdings of 1.17 million BTC remained untouched, serving as a strategic reserve. Other nations, like El Salvador, continued accumulating despite volatility, with President Nayib Bukele defending the strategy as forward-thinking.
As trading continued into the evening, eyes turned to upcoming economic data. Federal Reserve minutes, due Wednesday, could influence sentiment, particularly if they signal hawkish stances. Trump’s further comments on trade and military matters loomed as potential volatility drivers.
In summary, Bitcoin’s latest plunge reflects a confluence of policy shocks, market mechanics, and global uncertainties, yet underlying fundamentals and regulatory hopes suggest potential for recovery. As the digital asset navigates this turbulent phase, its role in the financial ecosystem continues to evolve, drawing both scrutiny and optimism from stakeholders worldwide.
