February 21, 2026 – Bitcoin demonstrated remarkable resilience today, defending the critical $68,000 support level despite a wave of panic selling triggered by President Trump’s sudden announcement of a 15% global tariff hike. The move comes less than 24 hours after a landmark Supreme Court ruling struck down his previous emergency trade measures, throwing global markets into a state of chaotic uncertainty. While the crypto market fear and greed index has plunged into "Extreme Fear," buyers are stepping in, suggesting that the digital asset may be decoupling from traditional risk correlations.

The Supreme Court Twist and Trump's 15% Counter-Punch

The catalyst for today's volatility was a stunning legal and political one-two punch. On Friday, February 20, the U.S. Supreme Court delivered a blow to the administration in Learning Resources, Inc. v. Trump, ruling that the President’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs was unconstitutional. Markets initially rallied on the news, believing the era of trade wars was ending.

However, that optimism was shattered early this morning when President Trump invoked Section 122 of the Trade Act of 1974 to not only reinstate duties but escalate them to a flat 15% rate on all imports. This aggressive Trump global tariffs 2026 strategy aims to bypass the Court’s specific objections, but it has reignited fears of stagflation. The Trump Supreme Court tariff ruling was expected to bring clarity; instead, it has unleashed a new phase of economic combat, sending traditional equities tumbling while Bitcoin fights to find its footing.

Bitcoin Price February 21: Anatomy of a Flash Crash

The Bitcoin price February 21 action has been a textbook study in volatility. Following the announcement at 8:00 AM EST, BTC plummeted from $71,200 to a low of $67,850 in under an hour. Algorithms and high-frequency traders reacted instantly to the strengthening U.S. dollar—a typical inverse correlation during tariff scares.

Yet, unlike the "Liberation Day" crash of 2025, the market found a floor. By midday, Bitcoin had reclaimed the $68,000 mark, trading sideways as bulls absorbed the selling pressure. Analysts point to the $68k level as a "line in the sand" for institutional holders who view the new tariffs as a long-term inflationary catalyst that will ultimately debase the dollar, strengthening the case for hard assets.

Sentiment Hits Rock Bottom: 'Bitcoin is Dead' Returns

Despite the price recovery, sentiment remains fragile. The crypto market fear and greed index dropped to 12/100 today, its lowest point since the correction of late 2025. This metric indicates that retail investors are capitulating, often a contrarian signal for smart money accumulation.

Adding to the bearish noise, Google Trends data shows that Bitcoin is dead search volume has spiked 300% in the last 48 hours. Historically, such surges in negative sentiment have often marked local bottoms. When the mainstream crowd is convinced that regulatory or macroeconomic headwinds will crush crypto, it often precedes a violent reversal to the upside.

BTC Short Squeeze Potential

The pervasive bearishness has led to a crowded trade. Derivatives data suggests record levels of short interest have piled up below $70,000. If Bitcoin can maintain its footing above $68,000 and push back towards $72,000, the BTC short squeeze potential is massive. A sudden move upward could force late bears to cover their positions, fueling a cascade of buying that could erase today's losses in hours.

Crypto Macro Trends 2026: The Inflation Hedge Narrative

Looking beyond the immediate noise, the crypto macro trends 2026 are shifting. While knee-jerk reactions to tariffs are negative due to liquidity concerns, the longer-term implication of a 15% global tariff is higher consumer prices. If the Federal Reserve is forced to cut rates to support growth despite rising inflation, we could enter a stagflationary environment where scarce assets like Bitcoin thrive.

Investors are now playing a game of chicken with the administration. If the tariffs stick, the dollar may strengthen initially, but the erosion of purchasing power is inevitable. For now, Bitcoin holding $68,000 is a statement: the market is beginning to price in the chaos, and it’s deciding not to fold.