Lead
On Monday, February 23, 2026, bitcoin tumbled more than 5% to trade below $65,000 after U.S. President Donald Trump announced plans to raise global tariffs to 15%. The move came even as Asian equities rose in early trade, marking a sharp divergence between crypto and regional stock markets. Bitcoin was last quoted at $64,816.8, down about 5.3%, while ether fell nearly 6% to $1,865.7. The drop extended a sell-off that has pushed the token well off its October peak.
Key Takeaways
- Bitcoin fell over 5% on Feb. 23, 2026, to $64,816.8, reflecting renewed market uncertainty following a tariff announcement.
- The cryptocurrency is down roughly 26% year-to-date and over 47% from its October high near $125,000.
- Ether slipped nearly 6% to $1,865.7 on the same session, showing broad pressure across major crypto assets.
- Spot gold rose about 1.5% on Monday, signaling a rotation into traditional safe havens.
- Analysts cited a mix of rising tariff risk, geopolitical tensions near Iran, low liquidity and weak market conviction as drivers of the sell-off.
- Some researchers expect further downside, with one firm projecting potential pressure toward the $50,000 area before a durable bottom forms.
Background
Bitcoin surged to an October peak around $125,000 before entering a protracted decline that carried into 2026. The cryptocurrency’s four-year cycle narrative continues to influence investor framing, with past boom-and-bust cadence cited by several market analysts. Macro developments this month — notably President Trump’s tariff announcement and a concentrated U.S. military presence in the Middle East — have heightened cross-asset uncertainty. Historically, periods of policy-driven trade risk and geopolitical tension prompt investors to reweight portfolios toward perceived safe havens such as gold.
Market structure factors are also important. Crypto markets have been operating with thinner liquidity and lower trading volumes than during previous bull runs, amplifying price moves. Institutional participation through ETFs and other products has shifted flow dynamics, while retail activity remains sensitive to headlines. Political calendars, including U.S. midterm and policy nomination debates, have added another layer of unpredictability for asset allocators.
Main Event
On the trading session referenced, Asian equities climbed in early trade while bitcoin moved sharply lower, underscoring a divergence between regional stocks and cryptocurrency. Traders and analysts linked the move to President Trump’s statement about increasing global tariffs to 15%, a policy change perceived as a potential headwind for global trade and economic growth. Market participants reacted quickly, with stop-losses and margin-driven selling contributing to the intra-day slide.
Industry sources pointed to a mix of headline-driven selling and market mechanics. Jeff Mei, chief operating officer at blockchain firm BTSE, said investors appeared to be trimming crypto exposure in anticipation of broader market deterioration after the tariff announcement. Markus Thielen of 10x Research emphasized that the drop reflected low liquidity and reduced conviction rather than a single deterministic cause.
Safe-haven flows were evident elsewhere: spot gold rose roughly 1.5% on the day, while some investors rotated into artificial intelligence and other equity themes perceived as resilient. Bitcoin earlier hit a one-year low of $63,119.8 on Feb. 5, highlighting that the asset has been under pressure even before the tariff news.
Analysis & Implications
The immediate implication is that tariff-driven policy risk can sap risk appetite across speculative assets, and cryptocurrencies appear particularly vulnerable when liquidity is thin. If tariffs materially slow global trade growth, analysts say growth-sensitive risk assets could face extended pressure; that dynamic may prompt further reallocation into bonds, gold and defensive equity sectors. Central-bank policy responses will be watched closely — rising trade tensions that threaten growth could eventually influence the Federal Reserve’s tone on rate cuts or hikes.
Market-structure issues amplify moves: low volumes magnify price swings and can turn otherwise incremental selling into cascade events. Several research heads have noted that current market conditions fit a protracted bear phase — low volume, low conviction, and headline sensitivity — which historically precedes deeper mean reversion. One research firm flagged the potential for bitcoin to test lower levels near $50,000 before a stable base emerges, though that is a projection, not a certainty.
On the institutional front, flows into and out of crypto ETFs and large custodial wallets will be telling in the coming weeks. If institutional sellers dominate, price pressure could persist; if buying interest from long-term holders or new entrants resumes, the market could stabilize. Geopolitical risk around Iran adds another unstable variable: escalation could push investors to reallocate into traditional safe havens, further widening the divergence between gold and volatile crypto assets.
Comparison & Data
| Metric | Value |
|---|---|
| October peak | $125,000 |
| Price on Feb. 23, 2026 | $64,816.8 |
| Year-to-date decline | ~26% |
| Decline since October | >47% |
| One-year low (Feb. 5) | $63,119.8 |
The table above shows the magnitude of bitcoin’s retracement from its October highs and the recent near-term low in early February. The YTD and since-October percentages reflect headline figures cited by market participants and illustrate how far prices have retraced. Comparing those levels with current spot prices helps contextualize analyst projections that expect further downside under stressed liquidity conditions.
Reactions & Quotes
Market participants and analysts offered immediate takes on the drivers behind the sell-off. Their comments were concise and focused on liquidity, policy risk and behavioral responses.
The sudden rise in tariff rates appears to have prompted investors to reduce crypto exposure ahead of broader market weakness.
Jeff Mei, BTSE (industry executive)
Mei framed the move as risk-reduction by market participants responding to a policy shock. His view ties the tariff announcement directly to selling pressure in digital-asset markets.
This decline is more a product of low liquidity and weak conviction than a single headline.
Markus Thielen, 10x Research (market intelligence)
Thielen emphasized structural market conditions — thin volumes and tentative positioning — as amplifiers of headline-driven volatility. His firm expects the market may test lower ranges in the near term.
The current retracement follows patterns consistent with the crypto four-year cycle, without a single triggering event.
Matt Hougan, Bitwise (CIO, asset manager)
Hougan noted that cyclical patterns and rotation into other asset classes, including gold and AI-related stocks, are part of the broader narrative explaining the sell-off. Bitwise manages over $15 billion in assets and is a major institutional player in crypto ETFs.
Unconfirmed
- That a full 15% global tariff will be enacted on the stated timetable remains subject to legislative and procedural steps and is not finalized.
- Any direct causal link that ties this single tariff announcement as the sole driver of the bitcoin move is unproven; liquidity and other factors likely contributed.
- Forecasts that bitcoin will reach $50,000 are analyst projections and should be treated as forward-looking estimates, not established outcomes.
Bottom Line
Bitcoin’s drop below $65,000 on Feb. 23, 2026, reflects a convergence of policy uncertainty, geopolitical friction and strained market structure. The tariff announcement amplified headline risk in a market already operating with lower liquidity and weaker conviction, producing outsized price moves relative to broader equities.
Investors should monitor three variables closely: confirmation and implementation timelines for tariff policy, on-the-ground geopolitical developments in the Middle East, and institutional flow patterns into or out of crypto products. Those elements will shape whether recent weakness stabilizes or extends toward lower technical thresholds in the coming weeks.