Bitcoin Eyes $70K as Extreme Fear Grips Crypto Market Following Trump Tariff Move

The cryptocurrency market is showing modest recovery signs on February 21, 2026, following months of sustained downside pressure since the October 2025 peak.

Total global market capitalization stands between $2.33 trillion and $2.41 trillion, depending on the tracker, marking a roughly 1% daily gain but remaining significantly down year-to-date.

Bitcoin dominance remains elevated at 56%–57%, reinforcing BTC’s leadership in what continues to be a risk-off environment. While sentiment remains fragile, early signs of stabilization are emerging as macro uncertainty intensifies following a major U.S. Supreme Court ruling on President Trump’s tariff policy.

Bitcoin Holds $68K After 46% Drawdown

Bitcoin is trading between $68,000 and $68,200, modestly higher on the day but still down approximately 46% from its October 2025 all-time high of $126,000. The asset has endured five consecutive negative months, with consistent monthly declines of $10,000–$15,000 per coin.

Technically, BTC is attempting to stabilize above the $65,000–$67,000 support zone after dipping toward $63,000 earlier in February. A sustained break above $69,000 could trigger over $800 million in short liquidations, potentially fueling a squeeze toward $70,000. On the downside, a 10% drop could liquidate approximately $2.35 billion in leveraged long positions.

Ethereum continues to underperform, trading between $1,962 and $1,976, down roughly 58% from its highs and struggling to reclaim the $2,000 level.

Market Sentiment: Extreme Fear, Neutral Momentum

Sentiment metrics remain cautious:

• Fear & Greed Index: 14 (Extreme Fear)
• Altcoin Season Index: 36/100 (Bitcoin Season)
• Average Crypto RSI: ~51 (Neutral)

Extreme fear often coincides with market bottoms, and the neutral RSI suggests the market is neither deeply oversold nor overheated. On-chain data reinforces this view: negative Market Value to Realized Value (MVRV) ratios indicate many holders are underwater, historically limiting further downside.

Meanwhile, Bitcoin whales have withdrawn between 60,000 and 100,000 BTC, worth $4–$7 billion from exchanges over the past month, signaling accumulation during the dip.

Liquidations: Deleveraging Without Capitulation

The recent downturn has been amplified by aggressive deleveraging. Over the past week, total crypto liquidations reached $3–4 billion, with Bitcoin futures accounting for $2–$2.5 billion. Open interest dropped roughly 20%, from $61 billion to $49 billion.

A February 5 crash marked a rare -6.05σ move, one of the fastest in history yet it remained orderly without a full capitulation cascade. More recently, $70 million in positions were liquidated on February 20.

The asymmetry remains notable: a 10% rally could liquidate $4.34 billion in shorts, suggesting potential fuel for an upside squeeze if BTC holds above $65,000.

Trump’s Tariff Ruling: A Macro Wildcard

The major macro development shaping markets came on February 20, when the U.S. Supreme Court ruled 6–3 that President Trump’s broad tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unconstitutional.

The struck-down tariffs, which ranged from 10% to as high as 145% on certain imports, had generated more than $130–200 billion in revenue since implementation. However, within hours of the ruling, Trump signed a new executive order imposing a 10% global tariff under Section 122 of the Trade Act of 1974, effective February 24.

Additional Section 301 investigations were also launched, potentially paving the way for further duties. Markets reacted modestly positive on hopes of refunds and policy clarity, but uncertainty remains elevated.

How Tariffs Could Impact Crypto

Short-term, renewed trade tensions may pressure risk assets, including cryptocurrencies, especially given their correlation with equities during macro stress periods.

However, longer-term implications could favor Bitcoin. Tariffs can drive inflation via higher import costs, increased government spending, and expanded debt issuance. Such conditions historically strengthen the narrative for Bitcoin as a decentralized inflation hedge.

Additionally, potential tariff refunds, estimated at tens of billions could inject liquidity back into the economy. Combined with possible Federal Reserve rate cuts later in 2026, macro stabilization may provide tailwinds for crypto markets.

Altcoins: Mixed Performance

Altcoins remain under pressure relative to Bitcoin:

• Solana (SOL): ~$85 (+1–2%)
• BNB: ~$629 (+2–3%)
• XRP: ~$1.44 (+1%)
• Meme coins such as DOGE and SHIB show stabilization after sharp drawdowns

With the Altcoin Season Index at 36, the market remains firmly in “Bitcoin Season,” though selective outperformance is emerging during daily rebounds.

Conclusion: A Wait-and-See Phase

The crypto market appears to be entering a stabilization phase marked by extreme fear, neutral technical indicators, and significant whale accumulation. While leverage has been flushed from the system, volatility remains elevated due to macro developments, particularly renewed trade tensions.

Bitcoin holding above $65,000 remains critical. A breakout above $70,000 could ignite a short squeeze, while failure to maintain support risks retesting February lows.

For now, the market remains in consolidation mode, caught between deleveraging exhaustion and macro uncertainty. As history has shown, such environments often precede major moves. Patience and disciplined risk management remain essential.

The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Related stories

Next article