Crypto crashing today (Feb. 24): Will Bitcoin, Ethereum, XRP Crash Continue or head for dream levels?
February 24, 2026The cryptocurrency market experienced a sharp downturn overnight, with Bitcoin (BTC) falling below $65,000, triggering a cascade of forced liquidations across derivatives markets. Over $230 million in leveraged long positions were wiped out in just one hour, while total crypto liquidations over the past 24 hours climbed to approximately $438 million, with Bitcoin alone accounting for $89 million of the total.
The sudden wave of selling intensified downward pressure across the market, pushing the total crypto capitalization down to $2.22 trillion, reflecting a clear shift into risk-off sentiment among investors.
Macroeconomic Shock Drives Crypto Sell-Off
The primary driver behind the sell-off appears to be macroeconomic news. On February 23, former President Donald Trump announced plans to raise global tariffs to 15%, citing trade imbalances. This announcement spurred immediate selling in equities, and the crypto market followed suit, reacting as high-beta risk assets.
Data indicates an 88% correlation between Bitcoin and the S&P 500 over the past 24 hours, demonstrating that this was part of a broader market move rather than an isolated crypto event. Investors are also keeping a close eye on the upcoming Senate discussions on the CLARITY Act, scheduled for February 25, as regulatory uncertainty continues to weigh on market sentiment.
Extreme Fear Signals Market Stress
The Crypto Fear & Greed Index has plunged to 11, signaling extreme fear in the market. Historically, such low readings have coincided with market bottoms, such as during November 2018 when BTC was near $3,500, March 2020 during the COVID crash near $4,000, and November 2022 during the FTX collapse near $16,000. While history doesn’t repeat exactly, sharp spikes in fear often occur during peak panic periods.
Currently, about 46% of Bitcoin’s supply is underwater, meaning nearly half of holders are sitting on unrealized losses. Weekly realized losses across the crypto market have reached $1.93 billion, marking the largest spike since 2022.
Bitcoin Faces Critical Support Levels
Bitcoin, the market leader, is now at a crucial juncture. After dipping below $65,000, the immediate focus is on whether it can hold the $64K–$65K support zone. A sustained hold above this level could allow for a short-term relief bounce toward $67,000. However, a breakdown below support could open the door for a test of $60K–$62K, and analysts warn that a deeper capitulation toward $35K–$45K cannot be ruled out if macroeconomic conditions worsen.
| BTC Support | BTC Resistance |
|---|---|
| $64K–$65K | $67K |
| $60K–$62K | $68K–$70K |
Bitcoin continues to behave like a risk-on asset, with its movements closely tied to equity markets and broader macro developments.
Ethereum Under Pressure
Ethereum (ETH), the second-largest cryptocurrency, also experienced significant losses, trading below $1,900 amid heightened volatility. ETH’s price is heavily correlated with Bitcoin, and the recent sell-off has been compounded by founder selling and leveraged position liquidations.
Analysts note that the immediate support for ETH lies around $1,700, while resistance is near $2,000. The broader sentiment remains bearish until key support zones stabilize and buyers step in.
| ETH Support | ETH Resistance |
|---|---|
| $1,700 | $2,000 |
| $1,500 | $2,100 |
XRP Hits Multi-Week Lows
XRP, known for cross-border payments and settlement liquidity, has also been under pressure, recently falling to $1.30–$1.35. ETF outflows and macro uncertainty have contributed to its decline. Near-term support for XRP is around $1.20–$1.30, with resistance at $1.50–$1.60. Regulatory clarity will be a key driver for XRP’s recovery potential.
| XRP Support | XRP Resistance |
|---|---|
| $1.20–$1.30 | $1.50–$1.60 |
Market Outlook: Caution Prevails
The current crypto market downturn is a mix of macro shocks, forced liquidations, and extreme fear. While some analysts see potential for short-term relief bounces if support zones hold, the overall sentiment remains cautious. The next market direction will likely depend on macroeconomic developments, regulatory clarity, and whether buyers step in to absorb the continued selling pressure.
Investors are advised to monitor critical support levels for Bitcoin, Ethereum, and XRP, as these zones will determine the market’s ability to stabilize or risk deeper losses in the coming days.