Bitcoin Drops Below $63,000 Triggering $850 Million in Liquidations as Indicators Signal Further Downside Risk

Bitcoin price fell to $62,709 on February 24, 2026, extending its decline to approximately 50% from the October 2025 all-time high of $126,000, as a tech-driven selloff triggered by AI firm Anthropic’s announcement erased $800 billion from US equity markets and led to $850 million in liquidations across top crypto assets over 48 hours.

The broader cryptocurrency market capitalization dropped 3% to $2.18 trillion, its lowest level in two years, with Ethereum falling to $1,810 lows amid ongoing sales by co-founder Vitalik Buterin and whale addresses. Altcoins including XRP, BNB, Solana, Dogecoin, Cardano (ADA), and Hyperliquid (HYPE) experienced steeper declines, with on-chain metrics and technical analysis highlighting structural weaknesses and liquidity risks that could drive further price falls.

The selloff affected more than 121,000 traders over 24 hours, with long positions accounting for over $300 million of liquidations and short positions contributing $85 million. The largest single liquidation order occurred on Aster, representing a $2.95 million BTC long position.

Market Context: AI-Driven Stock Selloff and Broader Risk Aversion

Bitcoin’s decline below $63,000 coincided with a sharp drop in US technology stocks after Anthropic announced that its AI assistant Claude can now streamline COBOL code, causing IBM stock to tumble 13% and erasing $800 billion in market capitalization. The correlation between Bitcoin and the Nasdaq 100 has strengthened in recent months, with the cryptocurrency increasingly moving in tandem with high-growth tech equities amid a risk-off sentiment across financial markets.

The selloff has been driven by pressure from US capital, heavy outflows from spot ETFs, and a shift of liquidity into artificial intelligence projects, which are absorbing spare capital at the expense of other risk assets. The Coinbase Premium—the price gap between Coinbase and global markets—has remained negative since December 2025, underscoring persistent selling pressure originating from United States investors.

On-Chain Metrics Flag Structural Weakness as Realized Profit/Loss Ratio Declines

Bitcoin’s Realized Profit/Loss Ratio (90-day simple moving average) has declined to approximately 1.5 and continues trending downward toward the critical 1.0 threshold. The metric reflects increasingly exhausted market liquidity conditions, with a sustained break below 1.0 indicating that realized losses across the entire market are exceeding profit-taking behavior—a condition historically associated with widespread capitulation selling.

Bitcoin currently trades well below its estimated “true market mean” near $79,000, while the realized price sits just under $55,000. This wide gap suggests persistent overhead supply, with longer-term holders remaining largely inactive while shorter-term participants drive price action within a broad $60,000-$72,000 corridor. The realized price near $55,000 is widely watched by market participants as a potential bottoming zone.

Capitulation-style losses have spiked to levels last seen at the 2022 cycle lows, with realized losses running approximately $1.5 billion per day during the flush. The $60,000 zone represents “deep value” territory across multiple mean-reversion frameworks, with approximately 60% probability that a meaningful low has already been established, though bottoms typically form through multiple “capitulation wicks” and periods of “time pain” rather than single price prints.

Warning of Potential Break Below $60,000

Bitcoin option expiry dynamics, political uncertainty, and concentrated positioning are converging, with potential for a break below $60,000 in the coming days that could intensify the crypto market downturn. Stablecoin growth has stalled, and passage of crypto market structure legislation will not immediately accelerate stablecoin expansion.

When gamma turns negative and positioning becomes crowded, price moves can accelerate far faster than fundamentals alone would suggest. The coming days will determine whether $60,000 holds as support or breaks as resistance.

Current political dynamics are driving risk asset consolidation, with positioning, policy uncertainty, and volatility dynamics suggesting investors should maintain patience and realism. In the current environment, preparation rather than prediction is most important.

Technical Indicators: Death Cross Formation and Support Levels

A potential death cross formation is expected on Bitcoin’s 3-day chart between the 50-day and 200-day simple moving averages, set to confirm on February 27. The death cross—a technical pattern where a shorter-term moving average crosses below a longer-term average—has historically preceded significant downside moves in bear markets.

Following the 2013 cycle peak, Bitcoin declined over 72% before the December 2014 death cross, with an additional 52% drop after confirmation. After the 2017 peak, the November 2018 death cross preceded a final 50% decline. Following the 2021 peak, the May 2022 death cross preceded approximately 45% additional downside.

If historical patterns partially repeat, a 30% decline from current levels would target approximately $40,000, while a 50% decline could reach the $30,000 range. This represents scenario analysis based on historical similarity rather than a deterministic forecast.

Immediate support is established around $63,000-$64,200, with the next significant demand zone between $60,000 and $55,000. The realized price near $55,000 represents a key on-chain anchor level. On the upside, resistance is concentrated between $68,800 and $70,000, where selling pressure has repeatedly emerged.

Liquidation Cascade and Derivatives Market Dynamics

More than 121,000 traders were liquidated in the past 24 hours, with total liquidations reaching approximately $850 million over two days. Over $300 million in long positions and $85 million in short positions were liquidated in the past 24 hours alone.

The liquidation cascade accelerated as Bitcoin broke below key support levels, with futures market “taker sell” volume spiking to $2.3 billion within one hour, forcing approximately 1,247 BTC in long positions to be liquidated with a nominal value exceeding $81 million.

Open interest in Bitcoin futures has declined to approximately $19.5 billion, representing a reduction of more than half from January 2026 highs as leverage positions are unwound. The sharp decline in open interest indicates aggressive deleveraging across the derivatives market, contributing to spot price pressure while potentially creating cleaner conditions for longer-term accumulation.

Altcoin Performance and Broader Market Impact

Ethereum fell to $1,810 lows, with selling pressure exacerbated by ongoing disposals from co-founder Vitalik Buterin, who has sold over 8,000 ETH since February 2, 2026, as part of a previously announced plan to fund ecosystem development. ETH remains in a sustained downtrend from its August 2025 all-time high of $4,946, representing a decline of more than 62% over approximately six months.

XRP, BNB, Solana, Dogecoin, Cardano, and Hyperliquid experienced amplified losses relative to Bitcoin, consistent with historical patterns where altcoins fall harder during broad market selloffs. Bitcoin’s dominance has increased as capital rotates out of higher-risk altcoin positions into relative safety.

Spot Bitcoin ETFs recorded approximately $7.5 billion in outflows during the drawdown, with roughly 62% of cumulative ETF inflows becoming underwater at prices near $80,000. However, ETF assets under management declined only mid-single digits, suggesting that earlier outflows aligned with CME open interest reductions consistent with basis-trade unwinding rather than structural institutional abandonment.

Frequently Asked Questions

What caused the recent Bitcoin price crash below $63,000?

Bitcoin’s decline below $63,000 was triggered by an AI-disruption driven selloff in US technology stocks after Anthropic announced Claude’s COBOL code capabilities, erasing $800 billion in equity market value. The cryptocurrency’s growing correlation with the Nasdaq 100 amplified the impact, with $850 million in liquidations across crypto markets over 48 hours. Additional factors include persistent US selling pressure reflected in the negative Coinbase Premium, $6.2 billion in ETF outflows since November, and capital rotation toward AI projects.

What are the key on-chain and technical indicators warning of further downside?

Bitcoin’s Realized Profit/Loss Ratio has declined to approximately 1.5 and is trending toward the critical 1.0 threshold—a break below which historically signals widespread capitulation selling where realized losses exceed profit-taking. Bitcoin is trading well below its “true market mean” near $79,000, with the realized price near $55,000 representing a key on-chain anchor. A potential death cross formation between the 50-day and 200-day moving averages is expected on February 27, a pattern historically preceding additional downside in bear markets. Option expiry dynamics and concentrated positioning could drive a break below $60,000.

What technical levels are traders watching?

Traders are monitoring immediate support near $63,000-$64,200, with the next significant demand zone between $60,000 and $55,000—the realized price level serving as an on-chain anchor. A death cross confirmation on February 27 between the 50-day and 200-day moving averages is expected. On the upside, resistance is concentrated between $68,800 and $70,000, where selling pressure has repeatedly emerged.

Bitcoin price fell to $62,709 on February 24, 2026, extending its decline to approximately 50% from the October 2025 all-time high of $126,000, as a tech-driven selloff triggered by AI firm Anthropic’s announcement erased $800 billion from US equity markets and led to $850 million in liquidations across top crypto assets over 48 hours.** **