The “Trump Tariff” Bitcoin Crash

Bitcoin Price Crash within a day and a half (less than 48 hours), Bitcoin fell almost 5%, reaching the area of $64,300, with the world markets responding to the Trump 15% tariff announcement. The policy action, which was implemented on the basis of the Section 122 Trade Act, led to the proliferation of risk-off concerns and triggered the start of greater crypto liquidations as of today, and a state of panic among investors that had not been seen in years.

This blog analyzes the macro catalyst, liquidation information, the Bitcoin ETF outflows, and the most important BTC support areas that 2026 investors need to keep an eye on.

Summary of the Strengths of the Consensus: Bitcoin Price Crashing Triggered a $65,000 Breakdown

During the period between February 23-24, the Bitcoin price crash made a clear break of the support level of $65,000 – the price had offered short-term structural support during the month of February.

The breakdown triggered the following:

• A 5% intraday decline
• Consolidation of prices between 63000-64300.
• Close to half a billion leveraged liquidations.
• Increased volatility in the crypto derivative markets.

As the Economic Times (Feb. 23, 2026) notes, Bitcoin dropped to below 65K soon after it was announced that tariffs were increasing to a 15% global tariff, which heightened macroeconomic panic. Source.

This was not strictly a technical move. It was a macro stress being transferred to digital assets by investors quickly adjusting risk exposure.

Trump’s 15% Tariff and Section 122 Trade Act: The Catalyst

The Laws that Underlie the Policy Change

It was based on the administration under Section 122’s impact on markets as per the Trade ACt of 1974 that authorizes temporary limitations on importation for a maximum of 150 days without congressional permission. This was after a Supreme Court decision that nullified the previous emergency tariff systems.

The Specialty Fabrics Review (Feb 23, 2026) reports that the tariff was increased to a 15% global tariff on imports from all countries, increasing trade tensions all over the world. Source.

Uncertainty was increased by the rate of escalation during the time of the bitcoin price crash.

Why is the Bitcoin price crashing under pressure from tariffs

Tariffs are inflationary shocks. When importations become expensive, there are a number of macro effects that occur:

• Consumer prices increase.
• The policy of the Federal Reserve is still tight.
• The yield on treasury is maintained high level.
• The U.S. dollar strengthens.
• Risk appetite declines.

Bitcoin is usually traded as a liquidity-sensitive asset. Capital flows to cash and bonds as well as defensive instruments in restrictive conditions. Although the narrative of Bitcoin being the digital gold is present, it acted more like a high-beta risk asset throughout this shock.

This compressing dynamic was one of the direct causes of the Bitcoin Price Crash because leveraged exposure was unwinding at a fast pace.

Cryptocurrency Liquidations Today: 500M, Derivatives Market Shock

The worst blow was experienced in futures markets.

According to Decrypt (Feb 24, 2026):

• $458M-$500M liquidated within 24-48 hours
• Over 136,000 traders were wiped out
• Long positions were 92% of the liquidations.

Such an imbalance indicates that traders were set to continue increasing above $65K. Source.

When the level broke:

• Stop-loss orders triggered
• Sales by force of sale collateral.
• Price declined further.
• Further liquidations trickled down.

This mechanical unwinding increased downside momentum in addition to spot selling pressure, as of the Trade Act of 1974, emergency powers.

Bitcoin ETF Outflows Indicate Institutional De-Risking

Retail was not the sole cause of the Bitcoin Price Crash. Spot Bitcoin ETFs experienced about 724m weekly outflows, with GBTC redemptions taking the lead.

The outflows of ETFs are important in the sense that they:

• Eliminate systematic structural purchasing.
• Signal institutional warning.
• Indicate macro allocation changes.

News by Guardia states, during macro stresses when ETFs are being redeemed, a negative effect can further exert itself as both spot selling and derivative liquidation are taking place.” The institutional flows are typically slow compared to the retail capital, i.e., long-term outflows might kill attempts to go up in a series of weeks. Source

Bitcoin Support 2026: Levels Investors Should Watch

To identify the possibility of this correction deepening, one should understand the support levels of BTC in 2026 according to the US trade policy 2026.

Immediate Support Zone

• $64,383: Recent intraday low
• $63,000: Short-term consolidation band 

Stabilization would be possible with the possession of this region.

The Critical Psychological Level: $60,000

Analysts have said that $60K is the structural line in the sand.

Sustained below the $60,000 break may:

• Make another day of crypto liquidations.
• Turn on algorithmic short positioning.
• Bearish medium-term trend structure.

This floor is now shaping a bigger market sentiment and can become a tipping point to Q1 2026 positioning.

Recovery Resistance Zones

To stabilize in a bullish manner, Bitcoin has to recapture the following:

• $66,000 – First recovery pivot
• $68,500 – Heavy supply zone

Momentum indicators indicate that RSI is falling below neutral 50 levels, which means that the strength is weakening, but has not reached the extreme levels of excessive oversold.

The recovery of $66K would be an indication of stabilization in the short term. Otherwise, rallies can continue to be restricted by the Trade Act of 1974 emergency powers.

Sentiment Collapse: Fear Index 5-11

Psychology in the market worsened significantly.

The Crypto Fear and Greed Index fell to 5-11 – extreme fear. Traditionally, these readings are held in the period of capitulation, but it is necessary to confirm it with the improvement of the liquidity situation.

Safe-Haven Rotation

In the wake of the bitcoin price crash, gold rose by some 2 percent, supporting the traditional safe-haven buying. This deviation tests the thesis of digital gold in case of inflationary trade shocks and notes the sensitivity of Bitcoin price crash to macro liquidity and not to the action of inflation hedging only.

Whale Accumulation Activity

Analytics on chains show that there were large wallets that were accumulated at the time of the decline.

The inflows of the wallets can be V-shaped, which is an indication of long-term positioning. But recovery needs to be sustained with more involvement, a better flow of ETFs, and stabilized rates of funds.

Macro Outlook for Q1 2026

The bitcoin price crash should be considered in the context of the macro.

Key variables ahead:

• Federal Reserve rate anticipations.
• Dollar index strength
• Global trade retaliation
• Bitcoin ETF outflows are stabilized.
• Period of the 150-day tariff window.

In case tariffs are maintained throughout the entire Section 122 impact on markets timeframe, the anticipation of inflation can still be high and could further delay the reduction of rates and tightening liquidity. Speculative assets such as crypto are traditionally pressured in that environment.

On the other hand, the confidence could be revived through diplomatic compromise, tariff watering down, or a purer forward signal by the policymakers. The most powerful stimulus for a long-term Bitcoin price crash recovery is liquidity expansion.

Frequently Asked Questions

Conclusion: Bitcoin Price Crash’s Next Destination

The recent bitcoin price crash is a macro-based repricing and not a structural failure in crypto markets. Anything under $65K caused liquidation forces and an ETF outflow, as well as a precipitous sentiment dustoff.

The short-term trend will now depend on whether Bitcoin will cover the 60,000 psychological floor. Occupancy of this zone can provide the opportunity to consolidate and recover slowly. A decisive break might continue to correct and redefine the US trade policy 2026 trend structure.

The Bitcoin Price Crash highlights one of the most important lessons of the new-age markets: digital assets are inextricably connected with the global macro policy, and as long as trade tensions exist, the volatility is expected to persist.

Also Read:

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Bitcoin Hasn’t Bottomed Yet says Ex JPMorganChase Vice Prez, BitThumb Crisis Worsens

Michael Saylor Sparks Controversial Debate on Satoshi Nakamoto, Critics Allege Escaping Accountability

Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.