At 9:30 am IST on February 24, the price of bitcoin quickly dropped to little over $63,543, a decrease of 2.18 percent over the previous day.
Over the last day, there has been a noticeable decline in global risk sentiment, which has led to a defensive stance in both stocks and cryptocurrencies. Technically, Bitcoin is still capped below the $66,000–$67,000 resistance range, with $62,000 serving as critical support, according to Riya Sehgal, Research Analyst at Delta Exchange.
“Amid geopolitical tensions in the Middle East and macro sentiment around Bitcoin long positions sinking, cryptocurrency derivatives platforms revealed the highest liquidations with about $500 million in long positions,” stated Nischal Shetty, founder of WazirX.
Other cryptocurrencies did the same. Over the past day, Ethereum was down 1.62 percent, XRP 0.63 percent, Solana 1.05 percent, TRON 1.86 percent, Dogecoin 1.07 percent, and Bitcoin Cash 10.37 percent, while Tether, USDC, and BNB were up 0.01 percent, 0.01 percent, and 0.53 percent, respectively.
This is the movement of bitcoin prices.
What is causing Bitcoin to crash? Is it time to make an investment?
The current surge in bitcoin, according to Avinash Shekhar, co-founder and CEO of Pi42, is more about positioning stress than panic. “After a protracted era of optimism, we are witnessing a recalibration of expectations. This is not disorderly capitulation, even though funding rates have decreased, momentum has slowed, and short-term conviction has obviously diminished.
He went on to say that while the derivatives posture is being unwound, spot flows stay comparatively constant. This implies that leverage, not a drop in adoption, is what is causing the downturn. Momentum trading is giving way to valuation sensitivity in the market. “Bitcoin will show that absorption is starting if it stabilizes above the $63,000 to $64,000 liquidity pocket. However, when systematic selling picks up speed, failure to maintain that range could hasten the decline toward deeper demand zones.”
Giottus CEO Vikram Subburaj suggests limiting leverage in light of ongoing ETF withdrawals and indications of supply from larger holders. If $60,000 fails, position sizing needs to account for the possibility of a downward extension toward the high-$50,000 zone. A prolonged breach over $70,000, however, together with improved ETF flows, would indicate fresh momentum. Usually, risk management influences results more than forecasting in this range-bound market.
