Bitcoin erased its weekend gains and plummeted from a high of $68,600 to a low of $64,161. This reversal was accelerated by macroeconomic instability following US President Donald Trump’s announcement of a 15% blanket tariff on imported goods.
sunday slump
Bitcoin’s weekend rally hit a wall on Monday, February 23rd, as the top cryptocurrency completely pared its gains and fell below $64,200. The reversal came as global markets retreated from a double whammy of volatility. The U.S. Supreme Court’s ruling on tariffs was quickly followed by President Donald Trump’s aggressive pledge to impose a 15% blanket tariff on imported goods.
Just 48 hours ago, sentiment appeared to be buoyant as investors cheered the Supreme Court’s decision and Bitcoin soared above $68,600. However, that optimism did not last long. The mood soured late Sunday after President Trump slammed the judiciary over the Feb. 20 ruling and vowed to impose new tariffs, sparking a diplomatic skirmish across the Atlantic.
The decline started as a slow hemorrhage, but bottomed out around 7pm ET on February 22nd. In a brutal two-hour time frame, Bitcoin’s value fell by more than $3,000 to bottom at a session low of $64,258. By noon Monday (12:55 p.m. ET), the price languished at $64,161. Even the disclosure of Strategies’ $39.8 million Bitcoin acquisition, which usually triggers a rally, was just a speed bump for the bears.
The current downward pressure is reinforced by the increasing tendency of institutional investors to withdraw. The Spot Bitcoin exchange-traded fund (ETF) recently recorded its fifth consecutive week of net outflows, with investors outflowing $316 million in the last week alone. This brings the total cumulative withdrawals over the five-week period to a staggering $3.8 billion. Adding to the worries, on-chain monitors reported that BlackRock had moved more than 1,100 people. $BTC This move to Coinbase is often interpreted as a harbinger of a major sale or customer redemption.
Perhaps the most ominous trigger was the reported unloading of 11,300 people. $BTC By Whale during Satoshi’s time. Although not yet officially verified, the coin’s massive movement coincided with a spike in sell orders during trading hours in Asia and Europe.
Meanwhile, $39.5 million in long bets evaporated in four hours as Bitcoin seesawed towards daily lows. The cryptocurrency also generated approximately $238 million in liquidations over a 24-hour period, and the broader crypto economy lost more than $590 million in leveraged positions in just one day.
Frequently asked questions ❓
- Why did Bitcoin fall? President Trump’s threat of new US tariffs has spooked global markets.
- How steep was the fall? Prices fell more than $3,000 in two hours to below $64,200.
- What role did educational institutions play? Spot ETFs saw $316 million in outflows for the week, and $3.8 billion in outflows over five weeks.
- Were whales involved? A reported 11,300 $BTC Wallet offloading during the Satoshi era accelerated selling pressure.
