Bitcoin Plunges to $65,000 as Crypto Market Endures Extreme Fear in February

Bitcoin and Ether serve as key gauges of risk appetite across digital-asset markets, with their moves often spilling over into smaller tokens and leveraged derivatives. The latest decline is significant because breaks below closely watched price levels can trigger automated selling and forced liquidations, amplifying losses as traders unwind positions financed with borrowed money.

Bitcoin fell below $78,000 in the latest selloff, while Ether slipped under $2,500. More than $470 million of cryptocurrency futures positions were liquidated across the market over the past 24 hours, with long positions accounting for 77% of the total. The Crypto Fear & Greed Index eased to 68, indicating sentiment remained positive but had become more cautious as prices extended their decline.

Bitcoin has struggled to break decisively away from $64,000 while Ether trades around the closely watched $1,900 threshold, signaling limited conviction across digital-asset markets. Softer-than-expected U.S. producer inflation for July and record highs in major U.S. equity indexes have supported broader risk appetite, but crypto investors remain cautious. The Fear and Greed Index is still in fear territory despite improving from recent lows.

Bitcoin was hovering near $64,000 in the latest 24-hour period, while Ether eased to about $1,862. Crypto derivatives liquidations totaled roughly $203 million, with short positions accounting for nearly 67% as the market’s rebound forced bearish traders out of leveraged bets. The Fear and Greed Index recovered to 46 but remained below the greed threshold, leaving prices vulnerable to incoming U.S. economic data and further shifts in leveraged positioning.

Bitcoin and Ether, the crypto market’s two largest risk assets, have become increasingly sensitive to shifts in technology stocks and inflation expectations. Disappointing reactions to earnings from Alphabet and Tesla renewed concern over the returns on heavy artificial-intelligence spending, while Brent crude’s move above $100 a barrel added to inflation worries and pressured demand for volatile assets.

On July 24, 2026, Bitcoin fell 1.66% over 24 hours and touched a low of $64,650, while Ether dropped 3.18% to as little as $1,859. CoinGlass reported $251 million in crypto liquidations, including $189 million in long positions, affecting 81,719 traders. The Fear & Greed Index compiled by alternative.me declined to 28 from 31, remaining in the “fear” range.

Bitcoin came under pressure in early 2026 from liquidations of highly leveraged positions, net outflows from U.S. spot Bitcoin ETFs and selling by miners, with losses deepening in February. Crypto assets and riskier investments such as U.S. stocks have declined in tandem, pushing market sentiment into extreme fear. Analysts also view BTC as having entered a technical bear market.

Bitcoin fell below $63,000 in February 2026 and briefly traded near $62,500, marking its lowest level of the year, while a weekly rebound quickly faded. Spot cumulative volume delta showed intensifying selling pressure. Market analysts identified $60,000 as key support; a break below that level could send the cryptocurrency into the $56,000–$60,000 range in the short term.

Bitcoin is known as a decentralized asset, but its recent trading has increasingly resembled that of a highly volatile technology stock. Its 30-day rolling correlation with the U.S. software ETF IGV rose to 0.73, while their volatility correlation reached a record 0.88. As investors sold technology giants including IBM, funds also flowed out of crypto, making the $63,000 support level a key gauge.

After U.S. stocks closed on Monday, bitcoin briefly fell to $63,465 early on Feb. 24, 2026, Taiwan time, before recovering to about $64,314. Ether touched a low of $1,813 and rebounded to $1,830. The Dow, S&P 500 and Nasdaq fell 1.66%, 1.04% and 1.13%, respectively, while IBM plunged 13%. The market remained in “extreme fear.”

Cryptocurrency prices are influenced by dollar liquidity, risk appetite and institutional fund flows. The Federal Reserve's recent hawkish stance, persistent outflows from spot Bitcoin ETFs and weakness in U.S. technology stocks have accelerated investors' retreat from risk assets, triggering cascading liquidations in the highly leveraged crypto derivatives market.

On June 23, Bitcoin fell below $62,000, while Ether and a range of altcoins also tumbled. Liquidations reached $714 million over the previous 24 hours, forcing about 144,000 traders out of their positions, with longs suffering the heaviest losses. The Crypto Fear & Greed Index fell to 23, entering the “extreme fear” zone.

During the 2022 rate-hike cycle, Bitcoin fell toward its 200-week average of about $22,000, entering a low-valuation zone commonly seen in past bear markets. US consumer prices rose 8.6% year on year in May, fueling expectations that the Federal Reserve would accelerate monetary tightening and putting pressure on high-risk crypto assets.

Bitcoin’s Fear & Greed Index fell to 9, placing it in the “extreme fear” zone, while its price approached long-term support at about $22,000. Markets turned their attention to the Federal Reserve’s June 14–15, 2022, FOMC meeting and assessed whether a 75-basis-point rate increase could trigger another wave of selling.

Bitcoin has remained under pressure amid threats from U.S. tariff policy and a broader selloff in risk assets. Because BTC is widely viewed as a gauge of risk appetite in crypto markets, its sharp decline has weighed on the sector and prompted investors to seek refuge in stablecoins, rapidly worsening market sentiment.

As of Feb. 23, 2026, the Crypto Fear & Greed Index had fallen to 5, placing it in the “extreme fear” zone. Polymarket traders put the probability of BTC falling below $55,000 at 72%, up from the 66%–70% shown in related reports, signaling expectations that the selloff could continue.

Alternative.me’s Crypto Fear & Greed Index gauges risk appetite in the crypto market using volatility, trading volume and market sentiment. Bitcoin’s decline has pushed fear into extreme territory. Historically, a bottom in sentiment that coincides with long-term Power Law support has often been viewed as an important signal that prices may be stabilizing.

Bitcoin most recently fell below $67,000, while the Crypto Fear & Greed Index dropped to 11, entering “extreme fear” territory and reaching its lowest level since early April 2025. Market analysts say “max fear” could foreshadow a rebound. If risk appetite recovers, Bitcoin may have a chance to catch up with U.S. stocks, which recently hit record highs.

Bitcoin and Ether are the crypto market’s leading assets, and sharp price declines can trigger forced liquidations on exchanges, amplifying selling pressure. Bitcoin’s slide toward $76,000 and Ether’s drop below $2,100 show that funds have yet to flow back into crypto in tandem with the Dow Jones Industrial Average’s record high.

As of July 19, preliminary data showed $53 million in liquidations across the market over four hours, with long positions accounting for 85%. Bitcoin later fell as low as $75,500, liquidating 64,000 traders for a combined $214 million. In the latest selloff, Bitcoin again dropped below $76,000 and Ether retreated to $2,000, while four-hour liquidations exceeded $134 million.