Table of Contents
February 23, 2026 – The cryptocurrency market is reeling today as Bitcoin (BTC) experienced a sharp decline, falling below $65,000 in early trading. This drop, triggered by increased selling pressure from large holders (“whales”) and renewed uncertainty over U.S. trade policy, has sent ripples across the market. The total crypto market capitalization has dropped by roughly 4.4% in 24 hours to about $2.23 trillion. This has led to a wave of liquidations, particularly among traders who had bet on higher prices using leverage, resulting in an estimated $240 million in long liquidations.
The downturn follows a broader trend of macroeconomic pressures, including the announcement of new global tariffs by the U.S. government, which has dampened investor appetite for risk. This, combined with increased selling activity from major Bitcoin holders, has accelerated the market’s downward trajectory. As the dust settles, analysts are closely watching key support levels to gauge the potential for further declines or a possible rebound.
Detailed Timeline of Events
- Sunday Evening, February 22, 2026: Bitcoin begins to slide, with most of the decline occurring within just two hours.
- Monday, February 23, 2026 (Early Trading): Bitcoin falls below $65,000. The price touched an intraday low of $64,384.2.
- On-Chain Analysis: Data from CryptoQuant reveals an increase in Bitcoin flowing from large private wallets to mainstream exchanges, indicating potential sales.
- Altcoin Performance: Other major tokens also slipped sharply. Ethereum fell nearly 5%.
- U.S. Trade Policy Concerns: Renewed upheaval in U.S. trade policy and heightened uncertainty over tariffs added to the negative sentiment.
Market Impact
The immediate impact of the news has been a broad-based sell-off across the cryptocurrency market. Bitcoin’s price dropped over 5% within 24 hours, triggering a wave of liquidations. Ethereum (ETH) has been underperforming Bitcoin, declining nearly 6%. Other altcoins, including XRP, Solana, Cardano, and BNB, have also experienced significant losses, ranging from 3% to 8%. The total market capitalization has decreased by approximately 4.4%, reflecting the widespread impact of the negative sentiment.
The decline has erased recent gains and brought Bitcoin back in sight of early-February lows, with some analysts suggesting a potential “base-building phase”. The volatility has been further amplified by liquidations in leveraged markets, where traders are forced to sell to cover their positions. This has led to a decrease in total open interest in the market, as traders unwind their positions amid fears of a deeper correction.
Expert Reactions
Market sentiment is undeniably fragile, with both retail and institutional investors reacting to the negative news. While specific quotes from major influencers like Elon Musk, Vitalik Buterin, and Michael Saylor are not yet available at the time of this report, the general atmosphere on social media is one of caution. Industry analysts have noted the increased selling pressure from large holders and the impact of the new tariffs on investor risk appetite.
Reports indicate that Vitalik Buterin has sold a portion of his ETH holdings which has sparked concerns over increased selling pressure on Ethereum.
Behind the Scenes Analysis
The current market downturn is driven by a confluence of factors. Firstly, the increased selling activity by Bitcoin whales signals that large holders are dominating exchange flows and contributing to downward price pressure. The “exchange whale ratio” has climbed to its highest level since October 2015. This suggests that a significant portion of Bitcoin inflows are originating from the largest depositing addresses. The movement of large amounts of Bitcoin to exchanges often precedes selling activity, increasing the supply available on the market and potentially driving down prices.
Secondly, the renewed uncertainty surrounding U.S. trade policy has weighed on investor sentiment. The announcement of new tariffs has dampened the appetite for riskier assets, leading to a flight to safety. This macroeconomic pressure is not specific to the crypto market but is affecting the broader financial landscape. Furthermore, U.S. spot Bitcoin exchange-traded funds (ETFs) have seen notable outflows in recent sessions, indicating weaker institutional demand. The combined effect of whale selling and macroeconomic concerns is creating a challenging environment for the cryptocurrency market.
Key Event Details
| Date | Involved Parties | Market Impact | Status |
|---|---|---|---|
| February 22-23, 2026 | Bitcoin Whales, U.S. Government (Tariffs) | Bitcoin Price Drop of 5%, Altcoin Sell-off | Ongoing |
| February 22-23, 2026 | Vitalik Buterin | Ethereum Price drop of 5% | Completed |
| February 23, 2026 | Leveraged Traders | $240 million in long liquidations | Ongoing |
What’s Next?
Investors should expect continued volatility in the coming days. The market will likely react to any further developments in U.S. trade policy, as well as any changes in institutional demand. Traders will be closely watching key support levels for Bitcoin, as a break below these levels could trigger further declines. The overall market sentiment is one of caution, and it is essential for investors to manage their risk and stay informed about the latest developments. Keep an eye on Next Bitcoins for more breaking news and analysis.
The SEC is now defining operational standards for exchanges, broker-dealers, and digital asset issuers. Modern SEC regulations have encouraged giants like Fidelity and BlackRock to launch “all-weather” crypto funds, expanding the asset class for pension funds and corporate treasuries.
The SEC has been providing a compliance ‘sandbox’ to crypto and DeFi projects in which they can launch new tokens and test ideas under streamlined rules. Several major platforms continue to offer competitive fees. With a better understanding of crypto exchanges, new traders can confidently enter the market.
