Bitcoin Falls Below $65,000 Amid Tariff Shock, Will $60,000 Be Next?

▲ Bitcoin (BTC)/ChatGPT-generated image

Bitcoin (BTC) has been pushed below the psychological resistance level of $65,000, as risk-off sentiment weighs on global markets, wiping out $96 billion from the total cryptocurrency market capitalization in a single day.

According to crypto-focused media outlet BeInCrypto on February 23 (local time), Bitcoin fell 4% from the previous day to trade around $64,987, breaking below the lower boundary of its recent range. The sharp decline is interpreted as a result of strong downward pressure on the crypto market after U.S. President Donald Trump announced the introduction of a universal 15% global tariff, rattling global financial markets. The total cryptocurrency market capitalization has shrunk to approximately $2.21 trillion, and if buying pressure fails to defend against the downturn, the risk of additional cascading liquidations remains.

Heavy selling has also been detected in the altcoin market, with technical indicators broadly turning bearish. LayerZero (ZRO) plunged 11.6% in a single day, marking the steepest drop among major altcoins, and fell below its 50-day exponential moving average, reinforcing the downward trend. BeInCrypto projected a pessimistic outlook, noting that reduced liquidity and weakening investor confidence are fueling selling activity, and that the total crypto market capitalization could retreat further to $2.13 trillion.

Regulatory developments and geopolitical risks are also adding to market anxiety. Crypto analytics firm Elliptic released a report suggesting that certain exchanges may be helping Russia evade sanctions, signaling potential regulatory pressure. Meanwhile, the U.S. Securities and Exchange Commission (SEC) issued eased guidance stating that broker-dealers may apply a 2% capital haircut—rather than the previously expected 100%—to stablecoins they hold, but this was insufficient to offset broader macroeconomic headwinds.

For Bitcoin to escape its short-term downtrend, it is urgent for the asset to reclaim the $65,000 level and establish it as support. If current selling pressure persists and the key support level at $62,893 collapses, panic selling by short-term holders could accelerate, further delaying the market’s recovery. Experts note that the longer the overall market capitalization remains below $2.21 trillion, the greater the potential for increased volatility.

The cryptocurrency market is currently navigating a prolonged correction amid the dual challenges of shifting trade policies under the Trump administration and tightening global liquidity. With expectations for a March rate cut fading, a cautious approach is warranted until market resilience improves, and the defense of key support levels will serve as a critical variable in determining direction over the coming days. Investors are closely monitoring macroeconomic indicators and policy changes, focusing on risk management as these factors continue to exert real-time influence on crypto prices.

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