Here’s Why the Crypto Market Is Crashing Again as Bitcoin Dips Toward $60K

February wasn’t kind to crypto traders.

After weeks of pretty slow and sluggish price action and fading optimism, the market delivered another blow on the very last day of the month. The Bitcoin price is now down more than 6% in the past 24 hours, sliding dangerously close to the $60,000 level. Ethereum has been hit even harder, dropping nearly 10% and trading around $1,800. Altcoins are bleeding across the board.

So what’s behind this latest wave of selling?

As usual, it’s a mix of geopolitical shock, macro pressure, and forced liquidations piling on top of an already fragile market.

Geopolitical Shock: Israel–Iran Escalation

The most immediate catalyst appears to be breaking geopolitical news.

Israel announced it launched a “preemptive attack” on Iran. Explosions were reported in Tehran, and red alerts were triggered in Israel.

Markets hate uncertainty. When geopolitical tensions flare up at this scale, investors typically move capital into perceived safe-haven assets like the U.S. dollar, gold, and government bonds. Risk assets — including crypto — often get dumped first.

Crypto trades 24/7. It reacts instantly.

That kind of news is enough to create panic selling, especially in a market that was already showing weakness. Traders who were sitting on thin profits rushed to de-risk. Leveraged positions got nervous. The sell pressure snowballed quickly.

But geopolitics alone doesn’t explain the full magnitude of the move.

Hotter Inflation Data and Fading Rate Cut Hopes

The macro backdrop has been quietly deteriorating.

On February 27, the January 2026 Producer Price Index (PPI) came in hotter than economists expected. Inflation is proving stickier than many hoped.

That changes the interest rate outlook.

When inflation runs hot, the Federal Reserve has less room to cut rates. Expectations for imminent rate cuts have now been pushed further out. The U.S. dollar strengthened on the data, and higher yields pressured rate-sensitive assets.

Crypto falls squarely into that category.

Lower rates typically boost liquidity and risk appetite. Delayed cuts drain some of that optimism. Traders who were positioned for easier monetary policy are now reassessing.

Bitcoin had been holding up relatively well above $60K for weeks. But once macro pressure intensified and geopolitical tension hit at the same time, that support began to crack.

Read also: Bitcoin (BTC) Price Forecast for the Next 8 Months

Liquidations and Weak Institutional Flows Add Fuel

Once Bitcoin started sliding, the liquidation engine kicked in.

Over the past 24 hours, $88.13 million in BTC positions were liquidated, marking a sharp spike in forced closures. When leveraged longs get wiped out, their positions are sold at market price. That accelerates downward momentum.

Ethereum’s sharper drop suggests leveraged positioning was even heavier in ETH.

There’s also a broader demand issue developing.

Spot Bitcoin ETF appetite has cooled significantly. Total assets under management have fallen by more than $24 billion over the past month. That signals reduced institutional inflows — or even steady outflows — removing an important layer of support that helped drive prior rallies.

Without strong ETF buying to absorb sell pressure, downside moves can extend further than many expect.

Is $60K the Line in the Sand?

Bitcoin approaching $60,000 is very important part of the story as well.

That level has acted as a key psychological and structural support in recent months. A clean breakdown below it could open the door toward the mid-$50K range. If buyers defend it aggressively, a bounce could follow.

Ethereum hovering near $1,800 tells a similar story. Lose that level convincingly, and the next strong support sits much lower.

Right now, the market is reacting to fear; geopolitical risk, stubborn inflation, and forced liquidations all colliding at once.

Crypto doesn’t need perfect conditions to rally. But it does need stability.

And at the moment, stability is in short supply.

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