Crypto Crash Reasons: Why Bitcoin Just Plunged Below $63k
Bitcoin has fallen below the $63,000 mark as a massive crypto crash wipes out millions in liquidations. Here is why the crypto market is down today.
The global digital asset market is facing a severe crypto crash today, February 24, 2026, as Bitcoin ($BTC) decisively broke below the critical $63,000 support level. After peaking at an all-time high of $126,000 in late 2025, the premier cryptocurrency has now lost 50% of its value, sending the total market capitalization sliding toward the $2.2 trillion mark.
Why is the Crypto Market Crashing Today?
The current bitcoin crash is not the result of a single event but rather a "perfect storm" of macroeconomic pressure and institutional sell-offs.
1. The Trump "Tariff Storm"
Market sentiment soured significantly after President Trump announced a new 15% global tariff framework. This move followed a Supreme Court ruling that struck down previous trade strategies, leading to an immediate "risk-off" environment. Investors are fleeing volatile assets like $Bitcoin in favor of traditional safe havens like gold and silver.
2. Institutional De-risking and Bitdeer Sell-off
The sell-off gained momentum following news that the mining giant Bitdeer depleted its entire Bitcoin reserve. By selling over 940 BTC, the company signaled a lack of confidence in near-term price recovery. Furthermore, the Coinbase Premium has turned deeply negative, suggesting that U.S. institutional investors are leading the exit while retail traders are left holding the bag.
3. The "Software-mageddon" Correlation
Bitcoin has become increasingly correlated with high-growth technology and AI stocks. As investors question the ROI of massive AI expenditures, a "software-mageddon" has hit the NASDAQ. This has forced hedge funds to liquidate their most liquid assets—often Bitcoin—to cover margin calls on their equity portfolios.
Crypto taxes made simple: Compare the top-rated tools for 100% compliance and efficiencyCritical Bitcoin Price Support Levels to Watch
With the $63,000 level breached, analysts are now looking at the psychological $60,000 mark as the final line of defense.
- $60,000: The "Must-Hold" zone. A daily close below this could trigger a capitulation event.
- $50,000 - $53,000: The historical "Bear Cross" zone where the 50-week moving average meets long-term support.
Market Impact: Altcoins and Liquidations
The crypto crash has not been limited to Bitcoin. $Ethereum has struggled to stay above $1,800, while others like Solana and XRP have seen double-digit percentage drops. According to data from Coinglass, over $360 million in long positions were liquidated in the last 24 hours alone, further fueling the downward spiral.
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Summary of the Crypto Crash
| Factor | Impact on Market |
|---|---|
| US Tariffs | High - Triggered global risk-off sentiment |
| Mining Sales | Medium - Increased immediate spot supply |
| AI Stock Slump | High - Forced institutional liquidations |
| Fear & Greed | Extreme Fear (Index at 8/100) |
