Crypto markets reel under broad-based selloff amid geopolitical tensions

Broader market stability, analysts said, is likely to hinge on easing macro headwinds and a rebound in capital flows, conditions that remain elusive in the current environment

Cryptocurrency markets witnessed heightened volatility on Tuesday, February 24, amid rising geopolitical tensions and shifting macroeconomic conditions, with popular assets Bitcoin and Ethereum struggling at key levels.  Bitcoin extended its retracement below the $66,000 threshold, briefly touching the $62,700 mark, while Ethereum hovered near $1,850 as broader deleveraging swept through crypto derivatives markets. Altcoins largely tracked Bitcoin’s subdued performance, with BNB trading near $600, Solana around $78, and XRP at approximately $1.36.

 

Investors, analysts said, were seen reassessing positions in light of risks such as potential oil price disruptions, a stronger dollar, and evolving expectations around inflation and interest rates. Broader market stability, they believe, is likely to hinge on easing macro headwinds and a rebound in capital flows, conditions that remain elusive in the current environment.

 

Geopolitical risks weigh

“Whenever geopolitical tensions rise, markets naturally turn cautious, and crypto is feeling that too. Investors are taking a step back to reassess positions, especially with the risk of oil price disruption if the Strait of Hormuz is affected, a stronger dollar, and shifting expectations around inflation and interest rates,” said Gracy Chen, CEO, Bitget.

 

In such phases, Chen noted, Bitcoin tends to trade like other risk assets, which explains the pressure on key levels and elevated volatility. She, however, maintained that the current move appears to be a broader market repricing rather than any fundamental shift in Bitcoin’s long-term outlook.  ALSO READ | Risk-off wave hits crypto after Trump's tariff move; Bitcoin dips near $64k

ETF outflows, macro drag

Echoing similar views, Riya Sehgal, research analyst at Delta Exchange, attributed the weakness to deteriorating global risk sentiment and continued outflows from spot Bitcoin ETFs.

 

“Global risk sentiment weakened notably over the past 24 hours, prompting a defensive tilt across equities and cryptocurrencies. Macro dynamics remain the dominant driver of sentiment. Even though the Federal Reserve has paused its tightening cycle, interest rates remain high relative to inflation, sustaining the appeal of interest-bearing assets at the expense of non-yielding instruments such as cryptocurrencies,” Sehgal said.

 

She added that escalating trade frictions and geopolitical uncertainties have revived demand for traditional safe-haven assets, supporting gold while weighing on high-beta segments. Institutional flow data, she noted, reflect persistent caution. “Continued outflows from spot Bitcoin ETFs have limited downside absorption, in contrast to renewed inflows into defensive asset classes,” said Sehgal.

 

At last check, BTC was trading 5 per cent lower at $63,199, with a 24-hour trading volume of $45.4 billion, according to CoinMarketCap. During the period, the cryptocurrency moved in a range of $62,709 to $66,592. The token remains over 50 per cent below its all-time high of $126,198 touched on October 7, 2025.

 

Ethereum mirrored Bitcoin’s weakness and slipped below the $1,900 mark. At last check, ETH was down 3 per cent at $1,823, with a 24-hour trading volume of $20.73 billion. The cryptocurrency traded between $1,813.22 and $1,935 during the period.

Key levels to watch

From a technical standpoint, Sehgal said Bitcoin remains capped below the $66,000 to $67,000 resistance band, with immediate support placed near $62,000. “Ethereum’s relative underperformance suggests lingering fragility unless prices reclaim the $2,000 level,” she added.

 

Vikram Subburaj, CEO of Giottus, advised caution in the current range-bound market, underscoring the importance of risk management and prudent position sizing amid the possibility of a downside move towards the high-$50,000 zone.

 

“Given continued ETF outflows and signs of supply from larger holders, leverage should be kept minimal. Position sizing must factor in the risk of a downside extension towards the high-$50,000 zone if $60,000 fails. At the same time, any sustained break above $70,000, accompanied by improving ETF flows, would signal renewed momentum. In a range-bound market, outcomes are often driven more by risk management than prediction,” Subburaj said.