Bitcoin (BTC) crashed below the critical $65,000 support level on Monday, February 23, 2026, triggering a massive risk-off wave across global financial markets. The sharp correction follows President Donald Trump’s surprise announcement to escalate the global tariff rate to 15%, a move that blindsided investors just days after the Supreme Court attempted to curb his trade powers.
Trump’s Section 122 Maneuver Shocks Markets
The catalyst for today’s Bitcoin price crash 2026 was a weekend of high-stakes political maneuvering in Washington. On Friday, February 20, the U.S. Supreme Court struck down the administration's previous use of emergency powers to impose broad tariffs, a ruling initially hailed as a victory for free trade. However, the market's relief was short-lived.
In a defiant response early Monday, President Trump invoked Section 122 of the 1974 Trade Act—a rarely used provision allowing for temporary balance-of-payments tariffs—to not only reinstate duties but raise the global baseline to 15% for a period of 150 days. This legislative pivot caught institutional desks off guard, shattering the "disinflation" narrative that had begun to take hold in early February.
“The market assumed the Supreme Court ruling was the end of the trade war escalation,” noted Caroline Mauron, a digital asset strategist. “Trump’s invocation of Section 122 has reintroduced extreme uncertainty, effectively telling the market that the trade war will continue regardless of judicial pushback.”
Crypto Market Liquidations Top $460 Million
The reaction in the derivatives market was instantaneous and brutal. As Trump global tariff news hit the wires during the Asian trading session, Bitcoin plummeted from $67,600 to an intraday low of $64,300. The violent downside move triggered a cascade of forced selling, resulting in over $360 million in crypto market liquidations within a single hour.
According to data from CoinGlass, total liquidations for the day have now breached $460 million, with long positions accounting for nearly 90% of the wipeout. Over-leveraged traders betting on a post-Supreme Court relief rally were trapped, accelerating the slide as stop-losses triggered in domino fashion. Major altcoins fared even worse, with Ethereum (ETH) dropping 5.2% and Solana (SOL) shedding over 6% in sympathy with the market leader.
ETF Outflows and Whale Sell-Offs Intensify
The crash was not driven solely by derivatives panic; spot market weakness has been building for weeks. Bitcoin ETF outflows today mark the continuation of a troubling trend, with U.S. spot Bitcoin ETFs recording their fifth consecutive week of net withdrawals. Institutional giants like BlackRock’s IBIT have seen volume taper off as macro headwinds stiffen.
On-chain data confirms that large holders are derisking. The "Exchange Whale Ratio" spiked to its highest level since 2015 on Monday morning, signaling significant whale sell-offs February 2026. This metric suggests that long-term holders are moving coins onto exchanges to sell into liquidity, fearing that the new 15% tariff regime will structurally elevate inflation and force the Federal Reserve to keep interest rates higher for longer.
Extreme Fear Grips the Market
Investor sentiment has deteriorated rapidly. The crypto fear and greed index plunged to a score of 14 today, entering "Extreme Fear" territory for the first time since the January correction. This stark reversal from last week’s neutral reading underscores how quickly market sentiment risk-off behavior has taken hold.
With the 15% tariff set to impact import costs immediately, traditional equities also felt the heat, with S&P 500 futures sliding 0.8%. Bitcoin’s correlation with risk assets remains high, and until the regulatory and macroeconomic fog clears, the $60,000 support level remains the next major battleground for bulls.
