The cryptocurrency market has kicked off the week under significant pressure as macroeconomic uncertainty and escalating trade tensions unsettle investors. Bitcoin, the leading digital asset, briefly dipped below $65,000, sparking an online frenzy characterized by panic signals and heightened search activity centered around the phrase ‘Bitcoin to zero.’
On February 23, Bitcoin plummeted to approximately $64,400, a sharp decline that dragged major altcoins down with it, erasing billions from the overall market capitalization. This movement came on the heels of an alarming announcement from U.S. President Donald Trump, who declared an increase in global import tariffs to 15%, stirring fears of a potential economic slowdown.
Fear Spikes as Retail Sentiment on Bitcoin (BTC) Deteriorates
Investor sentiment has taken a noticeable hit as Bitcoin struggles to stabilize around the $65,000 mark. The atmosphere is palpable with fear, evident in social media and market analytics. Google Trends has reported an unprecedented spike in searches for ‘Bitcoin to zero,’ revealing just how jittery retail investors have become in light of the recent price fluctuations.
Technical indicators illustrate that Bitcoin is grappling to maintain essential support levels while facing intense selling pressure. Spot trading volumes have plummeted by nearly 59%, constraining liquidity and contributing to erratic price movements. Furthermore, derivatives markets are mirroring this caution, with open interest decreasing to $19.5 billion—approximately half of what it was at its peak in January.
Current price charts suggest more potential downside if the support around $64,000 fails, with the $60,000 mark becoming a critical lower target. The 20-day moving average hovering around $68,278, combined with the lower Bollinger Band positioned near $64,098, indicates a tightening range that could result in further selling pressure should there be significant outflows or clustered leveraged longs between $64,090 and $64,536.
Macro Shocks Weigh on Crypto Markets
Analysts attribute the recent sell-off to a confluence of deteriorating economic indicators and a growing risk-off sentiment in financial markets. Recent U.S. housing data has shown a decline in pending home sales, while currency markets are reacting to anticipated tightening policies from the Bank of Japan, which has strengthened the yen and prompted global funds to reduce their leverage.
Compounding these issues has been increased ‘whale’ activity. On-chain data indicates that large Bitcoin holders have started to move their assets onto exchanges, a behavior commonly interpreted as a prelude to selling. The marked decrease in spot trading volumes also signifies that there is limited liquidity available to absorb rapid price changes.
The wider cryptocurrency market is following Bitcoin’s lead into the red, with Ethereum experiencing a decline of approximately 5% and other major cryptocurrencies showing losses ranging from 3% to 8%. Concerns were further amplified when Ethereum co-founder Vitalik Buterin sold millions of dollars worth of ETH, raising alarms about potential supply pressure in the near term.
Market participants are now looking at the $60,000 level as an essential support zone. Analysts caution that a sustained breach below this level could trigger sizable liquidations, while any recovery above the mid-$60,000 range might help stabilize the currently frail market sentiment.
