Bitcoin Breaks Support Level Amid Leverage Liquidation Fears Despite Institutional Buying

▲ Bitcoin (BTC) price crash / Gemini-generated image ©

Bitcoin (BTC) has broken below the $63,000 support level and is now at a crossroads for further decline, with excessive leverage in the futures market being cited as the primary cause of the downturn despite a series of positive developments in institutional adoption.

According to cryptocurrency media outlet U.Today on February 24 (local time), Bitcoin fell to as low as $62,945 late Tuesday, surrendering the $63,000 support level. The cryptocurrency is now down nearly 50% from its peak recorded in October 2025, extending a brutal month-long correction. John Haar, Managing Director at digital asset custody firm Swan Bitcoin, said in an interview with Charles Schwab Network that “most people did not anticipate a 50% price drop,” describing the environment as extremely frustrating for Bitcoin believers.

Haar analyzed that the current decline in Bitcoin’s price is being driven more by the derivatives market than by spot selling. A significant portion of Bitcoin market participants are speculative traders using excessive leverage, and when their positions move against them, forced liquidations occur in a domino effect, accelerating price declines. Haar also attributed the sharp drop from the $127,000 high to leveraged investors being liquidated, but highlighted that Bitcoin’s cyclical low points have steadily risen over time—from $3,000 to $16,000 and now to around $65,000.

Institutional adoption of Bitcoin continues actively, standing in contrast to the recent price action. Harvard University reportedly holds $500 million worth of Bitcoin, Middle Eastern sovereign wealth funds manage similar-scale holdings, and Vanguard has lowered the barrier for clients to invest in spot Bitcoin ETFs. Haar emphasized that major institutional entry, once unimaginable just a few years ago, is steadily progressing beneath the surface.

Market participants are watching the defense of the $60,000 support level as the final line that could determine either a rebound or a broader market collapse. Venture investor Vinny Lingham warned that if $60,000 breaks, a full capitulation phase could begin. Concerns are also mounting over the possibility that MicroStrategy, a major Bitcoin holder, could see its stock price plunge below $100.

Bitcoin is currently engaged in a difficult battle amid macroeconomic uncertainty and heightened volatility in the derivatives market. While strong institutional demand is helping to cushion downside pressure, instability is likely to persist until leveraged liquidation volumes are fully absorbed. Investors are advised to closely monitor the $60,000 support level and trends in futures open interest while focusing on risk management.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.