Tag Archives: fear

Why Bitcoin dropped to US$64,100: Trump tariffs, US$2.6B ETF outflows, and extreme fear grip crypto

Why Bitcoin dropped to US$64,100: Trump tariffs, US$2.6B ETF outflows, and extreme fear grip crypto

The cryptocurrency market faces a sharp correction as macroeconomic headwinds collide with fragile investor sentiment. President Trump’s announcement to raise global tariffs from 10 per cent to 15 per cent ignited a risk-off cascade, pulling capital from volatile assets like Bitcoin into traditional safe havens such as gold. This move, framed as a protective measure for the domestic industry, instead sparked immediate fears of a global trade war and resurgent inflation. Investors reacted swiftly, and the digital asset space bore the brunt of this repricing.

Macroeconomic pressure serves as the central catalyst for today’s decline. The tariff hike represents more than a trade adjustment. It signals a potential shift toward protectionism that could disrupt global supply chains and elevate costs for consumers and businesses alike. Geopolitical tensions, including a potential conflict between the United States and Iran, compound this anxiety and further strain market confidence. When traditional markets wobble, crypto often amplifies the move due to its higher beta.

Bitcoin’s drop below the critical US$65,000 support level triggered over US$460 million in liquidations across the market. This cascade of forced selling from overleveraged traders accelerated the price drop, creating a feedback loop that pushed Bitcoin near US$64,100, a decline of approximately five per cent. Ethereum followed suit, falling below US$1,900 to trade near US$1,840. Altcoins experienced even steeper losses, with Solana down seven per cent and XRP down six per cent. The Fear and Greed Index now sits at 11, reflecting extreme fear among investors. This metric, while useful, often captures short-term emotion rather than long-term value.

Institutional flows provide another layer to this downturn. Spot Bitcoin ETFs have seen significant outflows, with roughly US$2.6 billion exiting year to date. Major institutions, like BlackRock, reported single-day outflows of up to US$373 million. These numbers highlight how quickly institutional capital can rotate when macro conditions shift. It remains important to distinguish between strategic rebalancing and panic selling.

Some institutions may be reducing exposure temporarily to manage portfolio risk, not abandoning the asset class entirely. On-chain data adds further context, showing increased selling from whales and mining companies. Bitdeer, for instance, reportedly sold its entire Bitcoin holdings to support its balance sheet. While this activity adds selling pressure, it also reflects the diverse motivations of market participants. Miners often sell to cover operational costs, and large holders may take profits or adjust positions based on their own risk assessments. These actions are part of a maturing market’s ecosystem, not necessarily a signal of impending collapse.

The broader equity market painted a similar picture of risk aversion. Major US stock indices ended sharply lower on Monday, February 23, 2026, driven by renewed tariff uncertainty and mounting fears that artificial intelligence could disrupt corporate profits. The Dow Jones Industrial Average suffered its worst session in weeks, plunging 821.91 points to close at 48,804.06. The S&P 500 fell 1.04 per cent to 6,837.75, and the tech-heavy Nasdaq Composite slid 1.13 per cent to 22,627.27. Tariff uncertainty weighed heavily on trade-sensitive stocks like American Eagle Outfitters and Ralph Lauren. Simultaneously, markets grappled with a viral research report suggesting that AI could spark a race to the bottom in white-collar work.

IBM became the S&P 500’s biggest loser, tumbling 13 per cent in its worst day since 2000, after Anthropic’s Claude Code was touted as a tool to modernise COBOL programming, potentially threatening IBM’s legacy mainframe business. Financials also faced significant declines, with JPMorgan, Goldman Sachs, and American Express all posting major losses. Consumer Staples bucked the trend, leading the few gainers as investors sought defensive positions. This sector rotation underscores how quickly capital moves when uncertainty rises.

Global markets reacted with mixed signals on Tuesday, February 24, 2026. Asian markets opened with divergence. Japan’s Nikkei 225 rose 0.79 per cent following a holiday, while mainland Chinese shares saw gains as they returned from the Lunar New Year break, supported by optimism over potentially lower US tariffs following the Supreme Court’s ruling. This regional variation highlights how local factors can temper or amplify global trends.

For crypto, which trades continuously across borders, these disparities create both challenges and opportunities. Arbitrage possibilities emerge, but so does increased volatility as traders digest conflicting signals. The market is currently testing the US$60,000 psychological support level for Bitcoin. A break below this could signal further downside toward US$50,000. Support levels are not immutable. They represent zones where buyer interest may emerge, not guaranteed floors.

From my perspective, today’s decline reflects the growing pains of an asset class still finding its place within the global financial system. Crypto markets remain highly sensitive to macroeconomic narratives, but this sensitivity does not invalidate their long-term potential. The convergence of AI and blockchain, a theme I explore extensively, suggests that technological innovation will continue to drive value creation beyond short-term price action. The current risk-off environment tests investor resolve, but it also separates speculative noise from substantive projects. Decentralised systems offer resilience that traditional finance often lacks, and they are not immune to sentiment shifts.

The key lies in maintaining a focus on fundamentals: network activity, developer engagement, and real-world utility. These metrics matter more than daily price fluctuations.

 

Source: https://e27.co/why-bitcoin-dropped-to-us64100-trump-tariffs-us2-6b-etf-outflows-and-extreme-fear-grip-crypto-20260224/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

From extreme fear to opportunity: Why smart money is watching US$66K Bitcoin level

From extreme fear to opportunity: Why smart money is watching US$66K Bitcoin level

The digital asset market faced renewed pressure over the last 24 hours, slipping 1.1 per cent to a total capitalisation of US$2.3T. Bitcoin led the retreat, and its outsized influence at 58.03 per cent market dominance meant that any weakness in the flagship cryptocurrency rippled across the entire ecosystem. This move was not an isolated event but part of a broader recalibration as investors reassessed risk amid mixed signals from traditional finance and a persistent lack of bullish catalysts in crypto.

What stands out is the stark negative correlation of -66 per cent with Gold, suggesting that capital is not rotating between these alternative stores of value but rather exiting risk assets altogether. This divergence tells a story of selective caution rather than broad-based safe-haven demand, and it challenges the mainstream narrative that crypto simply mirrors traditional risk assets or acts as digital gold in times of uncertainty.

Bitcoin’s price action continues to set the tone for the entire market. With more than half of the total crypto market value tied to its performance, the current consolidation within a tight range reflects a pause in momentum rather than a decisive break. The market remains firmly in what traders call a Bitcoin Season, with capital showing little appetite for rotating into higher-beta altcoins.

This dynamic limits upside potential across the board and creates a fragile environment where any negative trigger can amplify selling pressure. The absence of fresh institutional inflows or clear regulatory progress has left buyers on the sidelines, waiting for a more compelling entry signal. I view this as a necessary consolidation phase that separates speculative froth from projects with genuine utility, a process that ultimately strengthens the foundation for the next leg of growth.

Sentiment metrics confirm the cautious mood. The Fear and Greed Index sits at 11, marking extreme fear and its lowest reading since Feb 6, 2026. This pervasive anxiety manifests most visibly in altcoin markets, where speculative positions are concentratedly liquidated. Cyber token fell 21.1 per cent while optimism declined 11.9 per cent, highlighting particular weakness in the AI and Layer 2 sectors that had previously attracted significant retail interest.

These moves suggest that traders are not merely taking profits but are actively reducing exposure to higher-risk narratives. The speed of the retreat indicates leveraged positions being unwound rather than organic selling, which can accelerate downside moves in thin liquidity conditions. From my perspective, this extreme fear reading often precedes counter-trend opportunities, but timing the bottom remains notoriously difficult and requires discipline rather than emotion.

The relationship between crypto and traditional markets adds another layer of complexity. Major equity indices trended higher on Feb 19, 2026, with the Nasdaq Composite gaining 0.78 per cent on strength in technology names. Crypto moved in the opposite direction. NVIDIA’s 1.6 per cent advance following Meta Platforms’ announcement of a long-term AI data centre partnership fuelled optimism in equities, though this enthusiasm did not spill over into digital assets.

In Asia, the Nikkei 225 advanced 0.8 per cent to 57,598.83, and South Korea’s Kospi surged three per cent to a record high, though markets in mainland China and Hong Kong remained closed for the Lunar New Year holiday. This divergence underscores that crypto is still navigating its own cycle, influenced by but not dictated by traditional risk sentiment. It also highlights the unique drivers within the digital asset ecosystem, where regulatory developments and on-chain metrics often outweigh macroeconomic headlines.

Macroeconomic headwinds continue to shape the backdrop. Minutes from the latest Federal Reserve meeting revealed officials are in no rush to cut interest rates, with several suggesting potential hikes if inflation remains above target. Traders currently price in a 50 per cent chance of a rate cut by June, but this uncertainty continues to pressure risk assets. Higher for longer rates increase the opportunity cost of holding non-yielding assets like Bitcoin, while also tightening financial conditions that can limit speculative capital.

The crypto market’s sensitivity to liquidity expectations means that any shift in Fed communication can trigger swift repricing, as we are seeing now. I believe this environment favours projects with clear revenue models and sustainable tokenomics, as the era of easy money rewarding pure speculation has temporarily paused.

From a technical lens, the near-term path hinges on Bitcoin holding above US$66,000. This level has provided key support during the recent consolidation, and a decisive break below could open the door to a swift test of the yearly low at a market cap of US$2.17T. Conversely, a US$68,000 reclaim would signal that buyers are stepping in with conviction and could catalyse a short-term recovery across altcoins.

These levels matter because they represent the boundary between continued consolidation and a deeper correction. Traders watching order flow and on-chain metrics will look for confirmation of support through sustained volume and reduced exchange inflows. My analysis suggests that respecting these technical levels while monitoring fundamental catalysts provides the most robust framework for navigating current volatility.

Two catalysts deserve close attention in the coming sessions.

  • First, daily US spot Bitcoin ETF flow data provides a real-time gauge of institutional appetite. Persistent outflows would reinforce the current risk-off tone, while a return to net inflows could stabilise sentiment.
  • Second, progress on crypto regulatory legislation, such as the Clarity Act, could provide the fundamental catalyst the market needs to break out of its current range.

Clear rules of the road would reduce uncertainty for both retail and institutional participants, potentially unlocking capital that has remained on the sidelines. Any delay or watered-down provisions could extend the consolidation period. I maintain that regulatory clarity, when done right, serves as a tailwind for innovation rather than a constraint, and the market will likely reward jurisdictions that embrace thoughtful frameworks.

 

Source: https://e27.co/from-extreme-fear-to-opportunity-why-smart-money-is-watching-us66k-bitcoin-level-20260219/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Fear and greed at 28: Why traders are fleeing crypto right now

Fear and greed at 28: Why traders are fleeing crypto right now
Most regional indices closed lower, weighed down by anxieties over US technology earnings and the looming announcement of President Donald Trump’s nominee for Federal Reserve chair. While Japan’s Nikkei 225 managed to stay slightly in positive territory amid choppy trading, Hong Kong and mainland Chinese benchmarks retreated, ending what had otherwise been a strong monthly rally. The divergence in performance underscored the growing sensitivity of global markets to both domestic policy signals and external shocks.
At the heart of the day’s market dynamics lay two dominant narratives:
  • First, concerns mounted over whether the massive artificial intelligence investments made by US tech giants would translate into tangible returns. Mixed earnings reports from major firms failed to reassure investors, casting doubt on the sustainability of the AI-driven valuation surge that has powered equity markets in recent quarters.
  • Second, anticipation built around the imminent nomination of the next Federal Reserve chair. With interest rate policy hanging in the balance, traders braced for potential shifts in monetary direction under a new leadership aligned with the Trump administration’s economic priorities. These dual uncertainties created a risk-averse backdrop across Asia.
This aversion to risk extended beyond equities into currencies and commodities. The US dollar strengthened as a traditional safe haven, while gold, typically a refuge during geopolitical stress, unexpectedly declined. This unusual move signalled that capital was not rotating into traditional hedges but instead retreating broadly from speculative exposure. Notably, Indian markets bucked the regional trend. The Sensex closed at 82,566.37 and the Nifty at 25,418.90, lifted by domestic optimism ahead of the Union Budget. India’s relative insulation highlighted how localised fiscal expectations can temporarily override global headwinds.
Meanwhile, the cryptocurrency market experienced a sharp contraction, shedding 6.82 per cent in 24 hours to settle at a $2.78 trillion valuation. This decline did not stem from internal protocol failures or regulatory crackdowns but from a cascading geopolitical risk-off event. Specifically, President Trump’s explicit threat of military strikes against Iran triggered a broad flight from all assets perceived as risky.
In this environment, crypto behaved not as a decentralised hedge but as a correlated risk asset, moving in near lockstep with equities and commodities. The correlation between crypto and gold reached an unusually high 88 per cent, confirming that macro forces, not blockchain fundamentals, were driving price action.
The primary catalyst was clear. Escalating US-Iran tensions injected acute uncertainty into financial markets. Investors, fearing broader conflict and potential oil supply disruptions, reduced exposure across the board. Crypto, despite its narrative as a non-sovereign store of value, proved vulnerable to the same macro fears affecting traditional markets. This moment laid bare a critical reality. In times of acute geopolitical stress, crypto still trades as part of the risk spectrum rather than outside it.
Compounding the sell-off was a violent unwinding of leverage. Over US$363 million in Bitcoin long positions were liquidated within 24 hours, a 175 per cent increase from baseline levels. This forced selling created a negative feedback loop. Falling prices triggered more margin calls, which accelerated the decline further.
Market sentiment deteriorated rapidly, with the 

Fear and Greed Index plunging to 28, deep into fear territory. Funding rates turned negative, averaging -0.00215 per cent, indicating that short sellers now dominated the derivatives market and were effectively being paid to maintain bearish positions. Open interest stood at US$608 billion, but its stability remained precarious as longs continued to exit.
Looking ahead, the market faces a pivotal juncture. Technically, the US$2.79 trillion level serves as a crucial support pivot. Holding this zone could allow for stabilisation if geopolitical tensions ease. A decisive break below opens the path toward the yearly low of US$2.42 trillion, particularly if institutional demand continues to wane. Bitcoin ETF flows on January 30 will offer a telling signal. Sustained outflows would confirm that even large players are adopting a defensive stance, reinforcing downward pressure.
This episode underscores a recurring theme in crypto’s maturation. Its increasing integration into the global macro framework means it no longer operates in a vacuum. Instead, it responds to the same geopolitical tremors, monetary policy shifts, and risk sentiment swings that govern equities and commodities. The notion of crypto as a crisis hedge remains aspirational unless it can decouple during true black-swan events, a test it has yet to pass convincingly.
Moreover, the role of leverage cannot be overstated. The US$363 million liquidation wave reveals how fragile market structure can amplify external shocks. While decentralisation promises resilience, the reality is that centralised exchanges, derivative platforms, and leveraged traders create systemic vulnerabilities that mirror traditional finance. Until these structural imbalances are addressed, crypto will remain susceptible to cascading sell-offs driven by macro panic.
In conclusion, January 30, 2026, marked another chapter in crypto’s evolution from fringe experiment to integrated financial asset, one that shares the burdens and behaviours of the broader market. The path forward hinges not on code or consensus alone, but on the unpredictable currents of global politics and investor psychology.
Whether this moment becomes a temporary dip or the start of a deeper correction depends on de-escalation, institutional resolve, and the market’s ability to hold its psychological and technical supports. Until then, crypto remains tethered to the world it once sought to transcend.

 

Source: https://e27.co/fear-and-greed-at-28-why-traders-are-fleeing-crypto-right-now-20260130/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j