Bitcoin, the world’s largest cryptocurrency, has been thrown into a whirlwind of volatility as its price tumbled more than 5% in the past 24 hours, falling below the crucial $65,000 mark. The sudden drop, which occurred within just two hours on Sunday evening, marks a series of historic lows and leaves investors and analysts alike grappling with what comes next for the famously unpredictable asset.
According to Bitcoin Magazine Pro, this sharp decline has now cemented Bitcoin’s first-ever stretch of six consecutive negative weekly closes, as well as six straight closes beneath its 100-week moving average and three consecutive closes below its 2021 high. At the time of writing, Bitcoin was trading near $64,500, down roughly $3,500 on the day and 27% over the past 30 days, as CoinGlass data confirms. If the losses continue through the end of February, this would mark the second-longest monthly losing streak in Bitcoin’s history.
Much of the selling pressure appears to be coming from so-called “whales”—large holders who are moving significant amounts of Bitcoin onto exchanges. CryptoQuant data reveals that the exchange whale ratio has surged to 0.64, its highest level since 2015. This means that nearly two-thirds of Bitcoin flowing onto exchanges is coming from the ten largest deposits each day. The average Bitcoin deposit size has also climbed to 1.58 BTC, a level not seen since June 2022, reinforcing the notion that big players are behind much of the current market activity.
While total inflows to exchanges have dropped about 60% from their early February spike—down to roughly 23,000 BTC on a seven-day average—exchange flows remain elevated. This leaves the market exposed to further volatility, as noted by Bitcoin Magazine Pro and CoinDesk. The rapid increase in trading activity during the drop signals active distribution, rather than a quiet drift lower.
On-chain data from Glassnode further illustrates the market’s turmoil. Earlier this month, the seven-day EMA of Bitcoin’s Net Realized Profit and Loss plunged to a staggering –$1.24 billion per day, indicating that recent buyers were collectively locking in over a billion dollars in losses each day. As of February 23, that figure has moderated to about –$480 million per day, suggesting that while panic selling has slowed, the market remains in a fragile base-building phase. “Recent buyers are still selling at a loss overall, a dynamic that typically appears during bottom-building phases rather than during strong uptrends,” CoinDesk reports, citing Glassnode analysts.
Market sentiment, unsurprisingly, has deteriorated sharply. The Crypto Fear & Greed Index fell four points to 5, plunging deep into the “Extreme Fear” zone, as highlighted by Crypto.news. This sentiment shift is being driven not only by on-chain dynamics but also by a confluence of macroeconomic and geopolitical risks.
Caroline Mauron, co-founder of Orbit Markets, told Bloomberg that the crypto market remains fragile, with traders closely watching the $60,000 support level. She pointed to rising tensions involving Iran and uncertainty around new U.S. tariffs as key pressure points. Over the weekend, President Donald Trump raised a proposed global tariff rate from 10% to 15% via Truth Social, following a U.S. Supreme Court decision that invalidated previous emergency tariffs. Trump quickly re-imposed tariffs under Section 122 of the Trade Act of 1974, unsettling broader markets and driving investors toward traditional safe havens like gold and silver, which rallied 2% and 5.6% respectively.
Bitcoin, meanwhile, continues to trade more like a high-beta risk asset than a defensive hedge in the current climate. This means that, unlike gold, which typically benefits from uncertainty, Bitcoin has been swept up in the broader risk-off sentiment that has gripped global markets. U.S. stock index futures have also declined, with the Nasdaq 100 down 0.9% in early trading, mirroring the risk aversion seen in crypto.
Technical analysts have identified $65,000 as a key psychological and technical support level for Bitcoin. Its breach now increases the probability of a retest of $60,000, and some warn that a failure to hold that level could see prices drop as low as $40,000. Yashu Gola, a crypto journalist and analyst, notes that Bitcoin has entered the breakdown stage of a bear pennant structure—a technical pattern that, if it plays out, could see the price fall to around $52,450, representing a further 19%–20% decline from current levels.
Despite the bearish mood, some institutional investors are still buying. Abu Dhabi’s Mubadala Investment Company increased its stake in BlackRock’s iShares Bitcoin Trust (IBIT) to 12.7 million shares worth about $630 million as of December 31, 2025, up 46% from the prior quarter. Al Warda Investments also raised its IBIT holdings to 8.22 million shares, bringing the combined total for the two Abu Dhabi funds to over 20 million IBIT shares valued at more than $1.1 billion at year-end 2025. Meanwhile, Strategy bought another 2,486 BTC for $168.4 million last week, bringing its total holdings to 717,131 BTC. Strategy executive Michael Saylor hinted on X that the firm may make its 100th Bitcoin purchase this week, continuing a 13-week accumulation streak despite a $5.8 billion unrealized loss.
There are also tentative signs that institutional positioning in the futures market may be shifting. The U.S. Commodity Futures Trading Commission reports that large traders in CME Bitcoin futures have reduced their short exposure significantly, moving net positioning from roughly +1,000 contracts a month ago to –1,600 contracts recently. A similar shift last April was followed by a 70% increase in Bitcoin prices, though analysts caution that positioning data alone does not guarantee a market bottom.
Adding to the complexity, altcoin exchange deposits have risen to about 49,000 daily in 2026, up from roughly 40,000 in late 2025, a trend that historically coincides with higher volatility and weaker risk appetite. Net USDT inflows to exchanges have also compressed sharply, dropping from a one-year high of $616 million in November to just $27 million, and even briefly turning negative in late January. This contraction in stablecoin inflows suggests reduced marginal buying power, compounding the challenges facing Bitcoin and the wider crypto market.
Looking ahead, all eyes are on several key catalysts. The outcome of ongoing U.S.–Iran nuclear talks in Geneva, confirmed by Oman for Thursday, could shift the geopolitical landscape. Meanwhile, NVIDIA’s upcoming earnings report is being treated as a litmus test for the AI trade and broader tech sector, both of which have a growing influence on crypto sentiment. Consensus expectations call for approximately 71% year-over-year profit growth and 67% revenue growth for NVIDIA. A strong report could help buoy risk assets, including Bitcoin, while a disappointment could deepen the current malaise.
The coming days will test whether Bitcoin can stabilize above the $60,000 threshold or if further capitulation is in store. For now, the market remains on edge, with whales leading the selling charge and retail investors nursing fresh wounds. The story of Bitcoin’s latest tumble is still being written, but one thing is clear: volatility is back, and nobody can afford to look away.