Global crypto markets cracked under fresh tariff fears. On Monday, Bitcoin’s price dropped sharply as traders digested renewed U.S. tariff policy signals. Former U.S. President Donald Trump announced plans to raise global tariffs to 15 per cent, triggering a broad “risk-off” wave that swept through crypto markets and wider financial assets. Traders reacted instantly, rotating out of high-volatility digital assets and into traditional safe havens like gold, which climbed more than two per cent. Bitcoin fell more than 5 per cent to trade near $64,000. Ethereum, the second-largest blockchain token, slid 5 per cent as selling pressure spread across most major cryptocurrencies. Altcoins bore the brunt of continued selling, with tokens such as Solana and Avalanche declining between 6 to 9 per cent. This reaction clearly reflected a sudden shift in sentiment as investors reevaluated exposure amid geopolitical and economic uncertainty.
Market participants linked the sell-off directly to heightened macroeconomic risk. Analysts explained that higher tariffs raised concerns about slower economic growth and tighter financial conditions. Traders saw these developments as a clear signal to reduce exposure to riskier assets like crypto. Crypto market cap dropped sharply, liquidations of leveraged positions accelerated, and many traders found themselves forced out of long positions. This broad liquidations cascade amplified downside pressure on prices across crypto markets. Risk sentiment indicators such as the crypto Fear & Greed Index dropped toward extreme fear conditions, highlighting deep nervousness among traders.
Beyond price moves, the sell-off carried broader implications. Softening demand for digital assets affected institutional investors as well. Crypto-related equities, including firms that hold significant Bitcoin reserves or operate exchanges, lost ground as the broader financial markets experienced volatility. The mood shifted quickly from a bullish narrative earlier this year toward caution as macro events dominated price action.
Record Bitcoin Flows to Binance Signal Volatility
Large Bitcoin inflows hit Binance wallets at the highest since late 2024. Overnight and into Monday, on-chain analytics revealed a whale transfer of approximately $760 million worth of BTC into the Binance exchange. This deposit boosted Binance’s Bitcoin balance to around 676,835 BTC — the largest total held by the exchange since November 2024. CryptoQuant and Arkham data both reflected this surge, which represented roughly a 9.3 per cent rise from recent lows.
Investors and analysts interpreted this move as a key signal of near-term volatility. Historically, large inflows to centralized exchange wallets come ahead of significant sell-offs or increased derivatives activity. Traders who hold large positions in Bitcoin tend to move assets onto exchanges when they decide to sell or to bolster margin positions in futures, options, and other leveraged products. The sudden spike in exchange balances raised alarms that more supply could hit the market, placing further downward pressure on prices already reacting to macro volatility.
Even though Binance remains one of the top exchanges for BTC liquidity, concentration risk has grown as exchanges collectively hold a substantial portion of centralized Bitcoin reserves. This invites speculation about potential systemic stress if large holders decide to exit positions simultaneously. Combined with thinner market liquidity, traders warned that these flows could intensify price swings.
Bitcoin Rebounds From Early Sell-Off
After initial declines, Bitcoin staged a partial bounce. In early trading hours, Bitcoin dipped to around $64,270 before buyers stepped in. Speculative activity returned later in the session, pushing the price back above the $66,000 mark. This rebound pointed to a resilient bid at lower levels and suggested that some traders viewed the sell-off as a buying opportunity amid broader macro fear.
Some market participants, including institutional traders, expressed optimism after the rebound. Reports suggested that corporate buyers and long-term holders began accumulating during the brief downturn. For example, commentary from certain strategy accounts indicated plans to add incremental BTC positions after the price retraced, though those views contrasted sharply with broader risk-off positioning. This tug-of-war between short-term traders and accumulation narratives created choppy price action throughout the trading day.
The rebound also reflected typical market psychology in high-volatility periods: traders quickly reacted to oversold conditions, initiating short-term buys that temporarily stemmed the downside. However, analysts cautioned that the renewed selling pressure from macro catalysts could limit the extent of any sustained recovery unless traders saw clear evidence of stabilizing trade policy or stronger economic cues.
Macro Uncertainty Remains Top Market Driver
Renewed tariff concerns ignited broader macro risk aversion that drove crypto markets. Traders noted that the global tariff discussion did more than affect equities and commodities — it altered the broader risk landscape in financial markets. After the Supreme Court struck down previous tariff emergency powers, political leaders moved forward with new tariff plans, adding layers of uncertainty. Crypto markets, which historically react strongly to macro shocks and leveraged positioning, found themselves especially sensitive to these developments.
Global traders shifted capital toward assets deemed safer amid turbulent market conditions. Gold and other traditional safe havens rallied as risk appetite waned. Bitcoin, which some investors have nicknamed “digital gold,” did not behave like a haven in this scenario. Instead, it mirrored risk assets like tech stocks, falling sharply as traders exited positions. Many analysts concluded that market sentiment, not intrinsic digital-asset fundamentals, held sway over price action during this event.
The tariff shock compounded a broader trend that began in late 2025 and continued into early 2026. Bitcoin’s price has retraced substantially from its October 2025 highs, losing nearly half of its value year-to-date. Traders now closely watch critical support levels such as $60,000, fearing that breaches could trigger additional downside. Conversely, reclaiming resistance near $70,000 could renew confidence among bulls.
Final Thoughts: Crypto’s Fragile Moment
On February 23, 2026, the crypto market revealed deep sensitivity to macro policy shifts, whale flows, and sudden volatility triggers. Bitcoin’s tariff-related plunge and Binance’s BTC balance surge offered clear signals of market stress and shifting trader behavior. The quick rebound highlighted that liquidity and demand remain present, even as macro risk weighs heavily on sentiment.
Investors face a market defined by rapid sentiment swings, heightened liquidity risks, and tighter macro conditions. Whether Bitcoin rebounds strongly from this point or continues to test lower levels depends on broader financial signals and political developments. Traders who watch macro catalysts alongside on-chain data will likely remain better equipped to navigate these choppy waters.
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