Bitcoin (BTC) broke below the critical $63,000 support level, trading as low as $62,945 during intraday sessions. This drop marks a psychological turning point, as the cryptocurrency is now officially down 50% from its October 2025 all-time high of $126,198.
The market is currently in a state of “Extreme Fear,” with the Sentiment Index crashing to a reading of 11—one of the lowest levels in recent history.
The “Perfect Storm”: Why is Bitcoin Crashing?
The current “capitulation event” is being driven by a combination of geopolitical whiplash, regulatory gridlock, and institutional deleveraging.
- The “Tariff Volley”: Following a U.S. Supreme Court ruling that struck down previous emergency powers, President Trump issued a fresh executive order on Saturday, February 21, raising the global tariff rate from 10% to 15%. This has triggered a massive “risk-off” move across all financial assets, including crypto.
- Hedge Fund “Basis Trade” Exit: Data from Q4 2025 and Q1 2026 reveals that major hedge funds (like Brevan Howard) have slashed their Bitcoin ETF positions by up to 86%. These funds were primarily exploiting the “carry yield” between spot and futures prices; once that spread compressed, the “smart money” exited en masse.
- Legislative Gridlock: The “Clarity Act” in Washington, which was expected to provide a clear legal framework for digital assets, has hit a wall in Congress. This uncertainty is deterring further institutional entry.
- Whale Distribution: On-chain data from CryptoQuant shows the Exchange Whale Ratio has hit 0.64—the highest since 2015. This indicates that the largest holders are actively moving coins onto exchanges to sell, rather than “HODLing.”
Technical Snapshot: Feb 24, 2026
The technical picture remains firmly bearish as Bitcoin enters its first-ever stretch of six consecutive negative weekly closes.
| Metric | Value / Status | Significance |
| Current Price | $62,945 | Breached the “line in the sand” at $63k. |
| All-Time High | $126,198 (Oct 2025) | Currently a 50.1% drawdown. |
| RSI (Weekly) | Oversold | Points to extreme exhaustion, but not necessarily a bottom. |
| Next Support | $60,000 | If this fails, analysts target the $47,000 – $50,000 range. |
The “Adoption Paradox”
Investors are witnessing a confusing split: while the price craters, institutional adoption is actually accelerating “under the surface.”
- Vanguard recently opened its doors to Bitcoin ETFs after years of refusal.
- Harvard Management Company disclosed holding over $500 million in BTC.
- Sovereign Wealth Funds in the Middle East have reportedly increased their “stealth” accumulation.
“It is a frustrating environment for believers… leverage in the derivatives market is causing price moves that completely ignore the positive adoption news.” — John Haar, Swan Bitcoin.
