The cryptocurrency market experienced a sharp downturn on February 23, 2026, with the global market capitalization dropping over 4% to $2.23 trillion. The sell-off was driven by a confluence of macroeconomic fears, significant asset disposals by key industry figures, and massive leveraged position liquidations.
Bitcoin led the decline, falling nearly 5% to around $64,375 after breaking below the key $66,000 support level. The broader market sentiment, as measured by the Crypto Fear and Greed Index, plunged to 14, indicating "Extreme Fear" among investors. Altcoins suffered even steeper losses, with Ethereum (ETH) dropping 5.5% below $1,870 and Solana (SOL) falling to $77.
The crash was attributed to four primary factors. First, Bitdeer, a major Bitcoin mining company, executed a large-scale sell-off, liquidating its entire corporate treasury of 943 BTC along with newly mined coins, bringing its net holdings to zero. Second, Ethereum co-founder Vitalik Buterin contributed to selling pressure, having sold over 7,000 ETH (worth approximately $15.5 million) in recent weeks, including a withdrawal of 3,500 ETH worth nearly $7 million.
Third, renewed global trade tensions spooked risk assets. Former U.S. President Donald Trump announced plans to increase global tariffs from 10% to 15%, a decision made in response to a Supreme Court ruling that deemed his previous tariff authority an overstep. This announcement fueled uncertainty and prompted a flight from volatile assets.
Finally, the price drop triggered a cascade of leveraged position liquidations. Over the past 24 hours, more than 136,000 traders were liquidated, with total liquidations exceeding $466 million. Long liquidations alone accounted for $433.65 million, exacerbating the downward momentum. Analysts suggest the market may remain under pressure until clarity returns on these macro risks.
