Crypto Markets Hit Hard by Geopolitical Tensions
On Tuesday, February 24, cryptocurrency markets experienced significant volatility, driven by escalating geopolitical tensions and changing macroeconomic conditions. Major assets like Bitcoin and Ethereum faced challenges at crucial levels. Bitcoin continued its pullback, dipping below the $66,000 level and briefly reaching $62,700, while Ethereum remained around $1,850 amid a wider deleveraging trend impacting crypto derivatives markets. Altcoins largely mirrored Bitcoin’s lacklustre performance, with BNB hovering around $600, Solana positioned near $78, and XRP trading at roughly $1.36. Investors and analysts are reportedly reassessing their positions due to risks including potential disruptions in oil prices, a strengthening dollar, and shifting expectations regarding inflation and interest rates. Market stability, analysts suggest, is expected to depend on the alleviation of macroeconomic challenges and a resurgence in capital flows, factors that are still difficult to attain in the present landscape. Geopolitical risks are a significant concern. “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. During these phases, Chen observed, Bitcoin often behaves similarly to other risk assets, shedding light on the pressure at crucial levels and the heightened volatility. She, however, asserted that the current move seems to reflect a wider market repricing instead of indicating any fundamental change in Bitcoin’s long-term perspective. A risk-off sentiment sweeps through the crypto market following Trump’s tariff announcement; Bitcoin sees a dip approaching $64k. ETF outflows, macro drag Riya Sehgal, research analyst at Delta Exchange, echoed similar views, attributing the weakness to deteriorating global risk sentiment and ongoing 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 continue to be the primary influence on market 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 noted that rising trade tensions and geopolitical uncertainties have rekindled interest in traditional safe-haven assets, bolstering gold while putting pressure on high-beta sectors. Institutional flow data, she pointed out, indicate a continued sense of caution. “Continued outflows from spot Bitcoin ETFs have limited downside absorption, in contrast to renewed inflows into defensive asset classes,” stated Sehgal.
At the latest update, BTC was down 5 per cent, trading at $63,199, with a 24-hour trading volume reported at $45.4 billion, as per reports. Throughout this timeframe, the cryptocurrency fluctuated between $62,709 and $66,592. The token is currently trading more than 50 percent below its all-time high of $126,198, which was reached on October 7, 2025. Ethereum followed Bitcoin’s downward trend and fell beneath the $1,900 threshold. At the latest update, ETH experienced a decline of 3 percent, trading at $1,823, accompanied by a 24-hour trading volume of $20.73 billion. The cryptocurrency fluctuated within a range of $1,813.22 to $1,935 throughout the specified period. From a technical perspective, Sehgal noted that Bitcoin is still struggling to break through the resistance band between $66,000 and $67,000, while immediate support is positioned around $62,000. “Ethereum’s relative underperformance suggests lingering fragility unless prices reclaim the $2,000 level,” she noted.
Vikram Subburaj emphasised the need for caution in the current range-bound market, highlighting the significance of risk management and careful position sizing as the market may face a potential 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 should take into account the potential risk of a downside extension towards the high-$50,000 zone if the $60,000 level does not hold. Simultaneously, a consistent breach above $70,000, paired with positive ETF inflows, would indicate a resurgence of momentum. “In a range-bound market, outcomes are often driven more by risk management than prediction,” Subburaj stated.
