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Bitcoin took a beating yesterday. The world’s biggest cryptocurrency tumbled under $63,000 as traders freaked out about President Trump’s tariff threats hitting global trade and economic growth. Markets got pretty messy fast.
The selloff started overnight when word spread that the Commerce Department might drop more tariff news soon. Bitcoin led the crypto bloodbath on February 24, dragging down everything from Ethereum to smaller altcoins. Investors didn’t want to stick around to see how bad things could get. The whole crypto market cap shed billions as fear took over. And it wasn’t just digital assets – traditional markets felt the heat too as traders worried about what aggressive trade policies might do to international business relationships and supply chains.
Things got ugly quick.
Fidelity Investments, one of the big institutional players in crypto, said they’re watching the situation closely. A company rep told reporters on February 23 that they haven’t changed their strategy yet, but they’re keeping tabs on how the tariff drama unfolds. “We’re monitoring developments but maintaining our long-term approach,” the spokesperson said during a brief call with financial media.
The Chicago Mercantile Exchange saw Bitcoin futures volume spike as traders rushed to hedge their bets. Some folks are betting on more pain ahead, while others think this dip creates a buying opportunity. It’s basically chaos out there. CME data shows futures activity jumped nearly 30% compared to last week’s average, with most of the action happening in the early morning hours when Asian markets opened.
Bitcoin miners are feeling the squeeze too. When prices drop this hard, mining operations start losing money fast. Smaller outfits might have to shut down rigs if Bitcoin can’t bounce back soon. The math just doesn’t work when electricity costs eat up all your profits.
But here’s where it gets interesting – Glassnode reported that Bitcoin is actually flowing off exchanges. On February 23, they tracked significant outflows, which usually means retail investors are moving coins to cold storage. People seem scared but they’re not selling everything. They’re just hiding their Bitcoin in personal wallets instead of leaving it on trading platforms. For more details, see Bitcoin Crashes Below K as Trump.
Binance confirmed the trading frenzy. A company spokesperson said volume surged about 20% on February 24 compared to the previous week. “We’re seeing intense activity as traders react to price swings,” they noted. That’s pretty typical when Bitcoin gets volatile – everyone wants in on the action, whether they’re buying the dip or cutting losses.
The SEC hasn’t said a word about any of this. Their silence on crypto regulation during trade policy chaos leaves everyone guessing. No guidance means more uncertainty, which crypto markets hate. Traders want to know if regulators might step in or change rules while everything’s already shaky.
MicroStrategy, which owns tons of Bitcoin, stayed quiet too. The company didn’t announce any changes to their massive crypto holdings. CEO Michael Saylor has been pretty vocal about Bitcoin in the past, but he’s keeping his mouth shut during this selloff. Maybe they’re just riding it out like they always do.
Coinbase saw crazy trading action yesterday. The exchange said users were both buying and selling like mad, with the sub-$63,000 price level attracting bargain hunters and nervous sellers alike. “We’re processing high volumes as customers adjust positions,” a Coinbase rep said.
Tesla hasn’t commented on their Bitcoin stash either. Elon Musk used to move crypto markets with his tweets, but he’s been radio silent lately. His company still holds Bitcoin from their 2021 buying spree, but nobody knows if they’re thinking about selling or buying more. This follows earlier reporting on Bitcoin falls below ,000 after trumps.
The Bitcoin Fear and Greed Index crashed into “Extreme Fear” territory on February 23. When this indicator hits those levels, it usually means traders expect more pain ahead. The index measures social media sentiment, trading volumes, and other factors to gauge market mood. Right now, that mood is pretty dark.
Grayscale Investments isn’t budging on their Bitcoin Trust strategy. A spokesperson said February 24 that they’re sticking with their long-term plan despite the market mess. “Our investment outlook remains unchanged,” they told reporters. Grayscale manages billions in crypto assets, so their steady approach might calm some nerves.
The Commerce Department’s tariff hints keep hanging over everything. Until there’s clarity on trade policy, Bitcoin probably stays jumpy. Traders are basically playing a guessing game with billions of dollars on the line.
The Federal Reserve’s upcoming monetary policy meeting on March 15 adds another layer of uncertainty for crypto investors. Interest rate decisions historically impact Bitcoin’s price movements, with higher rates often pushing investors toward traditional assets. Several Wall Street analysts warned that combining trade tensions with potential rate hikes creates a perfect storm for digital assets.
Meanwhile, institutional adoption continues despite the volatility. BlackRock’s Bitcoin ETF recorded $2.3 billion in trading volume on February 24, suggesting institutional money isn’t fleeing entirely. The ETF launched just months ago but already ranks among the most actively traded funds. Professional traders seem willing to weather short-term storms for long-term crypto exposure.
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