The cryptocurrency market faced renewed selling pressure on February 24, as Bitcoin fell below an important price level, triggering broader losses across major digital assets. The downturn gathered pace throughout Tuesday, reflecting growing investor caution and weakening market momentum.
Bitcoin (BTC) dropped to around $63,000 after losing the crucial $65,000 support level — a price many traders had been watching closely. The decline pushed the world’s largest cryptocurrency near its lowest point of the month. Meanwhile, leading altcoins followed the same direction. Ethereum (ETH), XRP, and Solana (SOL) each recorded losses of more than 4% over the past 24 hours.
As prices slipped, the total cryptocurrency market capitalization also shrank. According to data from CoinMarketCap, the combined value of tracked digital assets fell by about 4.23% in a single day, settling slightly above $2.18 trillion.
Risk-Off Mood Weighs on Crypto
A key factor behind the latest market drop is a strong shift toward a “risk-off” sentiment among investors. Traditional financial markets showed signs of stress earlier this week, with the VIX Index — often called Wall Street’s fear gauge — jumping more than 15% as U.S. stock markets declined by over 1%. At the same time, gold prices continued climbing toward record highs, signaling that investors are moving funds into safer assets.
Geopolitical tensions have added to market uncertainty. Concerns intensified after U.S. President Donald Trump considered military action involving Iran, following one of the largest American military deployments in the region in decades. Analysts warn that even a limited strike could escalate into a prolonged conflict, potentially driving oil and natural gas prices higher and increasing inflation pressures worldwide.
These developments have once again challenged the idea of Bitcoin as a safe-haven asset, as crypto prices moved lower alongside riskier investments.
Adding to investor anxiety are growing worries within the artificial intelligence sector. Several major technology stocks, including IBM, Microsoft, and Salesforce, experienced declines amid industry concerns. Since crypto markets often move in tandem with tech stocks, weakness in equities has contributed to the digital asset sell-off.
The market also reacted to new U.S. trade policies. A 10% tariff on all goods entering the United States recently took effect under Section 122, with expectations of additional tariffs following ongoing investigations.
Weak Market Signals and ETF Outflows
Beyond macroeconomic concerns, internal market indicators also point to weakening demand. Data from CoinGlass shows crypto futures open interest has fallen to around $90 billion — a sign that traders are reducing positions and new capital is slowing.
At the same time, crypto exchange-traded funds have recorded continued outflows. Spot Bitcoin ETFs saw withdrawals exceeding $203 million on Monday alone, pushing total outflows over the past four months beyond $7 billion. Ethereum ETFs have also experienced accelerating capital exits.
Technical indicators further explain the bearish mood. Bitcoin recently formed a bearish pennant pattern on the daily chart and remains below key moving averages as well as the Supertrend indicator. If downward momentum continues, analysts suggest Bitcoin could test the $50,000 level, potentially leading to additional market pressure in the coming weeks.
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