BlackRock Joins the Sell-Off! Bitcoin Bleeds Amid AI Fears and Tariff Bombshell

▲ BlackRock and Bitcoin (BTC) / ChatGPT-generated image ©

The powerful liquidity engine that once drove the virtual asset market has rapidly cooled. Amid mounting macroeconomic headwinds and rising fears surrounding artificial intelligence (AI), a wave of heavy selling has hit spot Bitcoin (BTC) exchange-traded funds (ETFs), pushing the leading cryptocurrency into a fragile defense near the low $60,000 range—down by half from its peak.

According to Trading News on February 25 (local time), Bitcoin fell to an intraday low of $62,858 on February 24, marking its fourth consecutive trading day of declines. This represents a staggering 50% plunge from its October 2025 peak of $125,000. The cryptocurrency has dropped more than 19% in February alone, recording its steepest monthly decline since the 2022 crash. The total market capitalization of the crypto sector has also halved from its peak to around $2.2 trillion, casting a deep shadow of fear across the broader market.

The primary drivers behind evaporating liquidity are macroeconomic headwinds and renewed pressure on technology stocks. The United States confirmed the implementation of a 10% global tariff applicable for 150 days and indicated it could raise the rate to 15%. At the same time, military tensions between the U.S. and Iran have escalated to their highest level since the 2003 Iraq War, freezing risk appetite among investors. Additionally, growing pessimism that advancements in AI will lead to widespread job losses has fueled simultaneous sell-offs in technology and growth stocks—assets that have shown strong correlation with Bitcoin.

This fear has transformed the spot ETF market—once a key driver of Bitcoin’s rally—into a major channel for outflows. The net assets of U.S. spot Bitcoin ETFs have fallen by half, from $170 billion in October 2025 to $84.3 billion currently, with a massive $7.2 billion in net outflows recorded since November alone. Notably, holdings of the iShares Bitcoin Trust (IBIT), managed by the world’s largest asset manager BlackRock, have declined 6% from their peak to 759,000 BTC.

In contrast, traditional safe-haven asset gold has attracted substantial inflows, forming a stark divergence from Bitcoin. Gold futures have surged past $5,200 per ounce, maintaining strong upward momentum, while gold ETFs have drawn tens of billions of dollars in the past 90 days. In a tight monetary environment where real interest rates range between 1.7% and 1.8%, institutional investors are clearly shifting capital toward cash equivalents and gold rather than non-yielding Bitcoin.

Bitcoin’s immediate fate hinges on whether it can defend the critical support zone between $60,000 and $62,000. If this threshold is decisively breached on a weekly closing basis, the cryptocurrency could face a further precipitous drop of 15% to 22% from current levels, potentially plunging to the $49,000–$53,000 range. Conversely, to establish a meaningful trend reversal, Bitcoin must firmly break through and hold above the $72,000–$74,000 resistance zone.

The outlet advised that given the continued spot ETF outflows and persistent macroeconomic pressures, investors should maintain a cautious stance rather than engage in premature buying, keeping in mind the possibility of a deeper slide into the upper $40,000 range if the $60,000 support collapses.

Disclaimer: This article is for investment reference purposes only, and no responsibility is taken for any investment losses incurred based on this information. The content should be interpreted solely for informational purposes.