Bitcoin price crash February 2026 — The cryptocurrency market is reeling today after Bitcoin (BTC) plummeted below the psychological $65,000 threshold, triggering a cascade of sell-offs across the digital asset space. The sharp downturn follows President Donald Trump's shock announcement of a Trump global tariff hike 15 percent, a retaliatory trade measure that has sent shockwaves through global financial markets. As panic spread, crypto market liquidations today surged to approximately $460 million, wiping out leveraged long positions and pushing market sentiment to historic lows.

Trump's Tariff War Ignites Market Sell-Off

The catalyst for today's market turmoil was President Trump's late-night post on Truth Social, declaring a universal 15% tariff on all imports. This aggressive move comes less than 24 hours after the Supreme Court ruled his previous use of emergency powers under the International Emergency Economic Powers Act (IEEPA) unconstitutional. Undeterred by the judicial rebuke, the President has now invoked Section 122 of the Trade Act of 1974 to enforce the levies, citing "balance of payments" emergencies.

Investors reacted immediately to the heightened trade war risks. Traditional equities futures slid alongside risk assets, but the crypto market took the hardest hit. Bitcoin fell nearly 5% within hours, dropping from a stable $67,600 to a local low of $64,300. The correlation between crypto assets and macroeconomic stability remains tight, and the prospect of a 15% global tax has reignited fears of sticky inflation and a hawkish Federal Reserve.

$460M Wiped Out in Crypto Market Liquidations Today

The speed of the drop caught bullish traders off guard. Data from major derivatives platforms confirms that crypto market liquidations today exceeded $460 million, with the vast majority being long positions. This "long squeeze" exacerbated the downward pressure, as forced selling drove prices deeper into the red.

Analysts point to a lack of liquidity on weekend order books as a contributing factor to the volatility. "The market was already fragile," noted a senior analyst at a leading crypto hedge fund. "When the tariff news hit, we saw a vacuum in buy-side liquidity. Stop-losses were triggered in a domino effect, smashing through the $65,000 support that had held for weeks."

Vitalik's Selling Spree Weighs on Ethereum

While Bitcoin struggles, the second-largest cryptocurrency is facing its own unique headwinds. Ethereum price drop Vitalik selling has become a trending topic among traders. On-chain data reveals that Ethereum co-founder Vitalik Buterin recently offloaded approximately 1,869 ETH (valued at roughly $3.67 million). This latest sale brings his total liquidation for February 2026 to over 8,800 ETH.

ETH has tumbled nearly 6%, breaking below the $1,900 level to trade around $1,860. While Buterin's sales are often for charitable causes or project funding, the timing has spooked a jittery market. The narrative of "founder capitulation" is adding to the bearish momentum, despite Ethereum's strong network fundamentals.

Critical Bitcoin Support Levels: Will $60,000 Hold?

Technical analysts are now scrambling to identify the market's floor. With the $65,000 defense line breached, all eyes are on Bitcoin support levels $60000. A sustained close below $64,000 could open the door for a retest of the $60,000 psychological zone, a level not seen since the early days of the year.

"If we don't reclaim $65,500 quickly, the path of least resistance is down," warns crypto chartist and trader @CryptoCapo26. "The $60k region is the last major line of defense before we look at the mid-$50ks. The Supreme Court tariff ruling impact has fundamentally shifted the risk appetite for this quarter."

Extreme Fear Grips the Market

Sentiment indicators paint a grim picture of investor psychology. The crypto fear and greed index extreme fear reading has dropped to a value of 5—one of the lowest scores recorded in years. This level of extreme bearishness often signals a potential bottom, but it can also precede a prolonged period of stagnation.

For now, traders are advised to exercise extreme caution. The interplay between Washington's trade policy and digital asset prices is stronger than ever. Until clarity emerges regarding the implementation of the new 15% tariffs and the potential for further legal challenges, Bitcoin and the broader crypto market remain in dangerous territory.