Bitcoin Slides Below $65,000 as Iran Tensions and Global Tariff Hikes Trigger $100 Billion Market Rout

Bitcoin erases 2024 election gains as $100bn is wiped from crypto markets. Learn how Iran tensions and new tariffs are driving massive ETF outflows in 2026.

By: AXL Media

Published: Feb 24, 2026, 4:28 AM EST

Source: The information in this article was sourced from Calcalist

The Transaction or Development

The digital asset market has entered a period of sharp correction as Bitcoin fell below the critical $65,000 mark during recent trading sessions. This move represents a significant retreat from recent highs, effectively neutralizing the "Trump trade" momentum that had sustained the market since November 2024. According to market data, the broader cryptocurrency ecosystem saw a massive liquidation event, with approximately $100 billion in total market capitalization vanishing within a 24-hour window. This volatility marks one of the most substantial pullbacks for the leading cryptocurrency in the current fiscal year, as investors pivot away from high-beta assets in response to deteriorating macroeconomic indicators.

Regulatory and Competitive Landscape

The current market instability is deeply intertwined with a shift in global trade policy, specifically the recent and rapid escalation of international tariff rates. These protectionist measures have introduced a new layer of uncertainty for global capital markets, prompting institutional players to reassess their exposure to decentralized assets. According to Jeff Mei, the chief operating officer at blockchain firm BTSE, the sharp rise in tariff rates is directly causing investors to sell off crypto holdings in anticipation of a broader and more severe decline in traditional capital markets. This regulatory friction is being compounded by the ongoing fiscal adjustments in the United States, where the post-election honeymoon period for digital assets appears to have concluded.

Strategic Rationale and Market Impact

The impact of this downturn is most visible in the institutional sector, where Bitcoin exchange-traded funds (ETFs) have experienced a sustained period of capital flight. According to industry reports, Bitcoin ETFs have recorded net outflows for five consecutive weeks, a trend that suggests a cooling of the institutional fervor that dominated early 2025. This strategic retreat by large-scale investors has removed a significant liquidity floor from the market, making Bitcoin more susceptible to sudden price drops triggered by external shocks. The loss of $100 billion in market value in such a short duration highlights the fragility of current sentiment and the limited effectiveness of existing support levels when faced with multi-pronged macro threats.