Bitcoin Drops Below $64,500 as Altcoins Tank Hard

Bitcoin’s weekend rally crashed Monday. The crypto fell below $64,500 for the first time in over two weeks after legacy futures markets opened, triggering a sharp selloff that caught traders off guard.

BTC had been riding high after briefly touching $71,000 over the weekend – its first visit to those levels in about a week. But the party didn’t last long. Monday brought rejection at key resistance levels, sending Bitcoin tumbling below $67,500. The crypto tried to bounce back several times throughout the week, but each rally fizzled out. By Thursday, BTC had slipped to $65,600, and traders were getting nervous about the next move.

Weekend action looked promising again.

Bitcoin surged back toward $69,000 over the weekend, but it couldn’t break free from its trading range. The crypto seemed stuck, bouncing between the same levels that had defined its movement for days. Then Trump dropped a bombshell that changed everything.

The President announced a new 10% global tax following a Supreme Court decision against certain tariffs, with plans to bump it up to 15% later. Bitcoin initially shrugged off the news, but futures markets had other ideas. As Sunday night rolled into Monday morning, BTC crashed to $64,300 – a 17-day low that sent shockwaves through the crypto community. The crypto managed to claw back above $66,000, but it’s still down 2.5% for the day. Market cap dropped to $1.325 trillion, and Bitcoin’s dominance sits near 56.5%.

Ethereum took a beating too. ETH fell from nearly $2,000 to $1,850 before finding some footing above $1,900. That’s still a painful drop for holders who watched their bags shrink in real time.

XRP wasn’t spared either.

The token dropped more than 2% to $1.40, joining BNB, DOGE, ADA, and LINK in the red. But the real carnage hit BCH, SOL, and HYPE – each one down as much as 6%. Traders who thought altcoin season was back got a harsh reality check.

PIPPIN bucked the trend hard, surging over 23% to exceed $0.72. The token’s rally stood out like a beacon in a sea of red, proving that even in brutal market conditions, some coins can still find buyers. TON and M also posted slight gains, but these pockets of strength couldn’t offset the broader damage. The total crypto market cap shed over $60 billion, falling to $2.350 trillion. See also: Bitcoin Whales Dump Massive Holdings as.

Trading activity exploded on major exchanges as the selloff intensified. Binance reported a massive surge in volume, particularly in BTC/USDT pairs, as traders scrambled to react to the price action. February 23 saw some of the heaviest trading in weeks, with retail and institutional players both hitting the markets hard.

MicroStrategy stayed put through the chaos. The company didn’t sell any Bitcoin despite the sharp drop, sticking to its long-term strategy. CEO Michael Saylor has preached Bitcoin as an inflation hedge for years, and he’s not changing course now just because of some short-term volatility.

JPMorgan analysts are watching Trump’s tax proposal closely. They think the policy could create more volatility as investors try to figure out what it means for their portfolios. The uncertainty is pretty much guaranteed to keep markets jumpy until there’s more clarity from Washington.

CryptoQuant noted that smaller altcoins saw trading volumes spike during the selloff. Tokens like HYPE and SOL experienced sharp increases in activity as traders repositioned their holdings. The data suggests investors were actively reallocating assets, probably trying to get ahead of further price drops.

Several exchanges adjusted their operations to handle the surge in activity. Kraken and Bitstamp temporarily increased withdrawal limits to prevent bottlenecks as users rushed to move their crypto around. February 23 saw withdrawal requests jump significantly, reflecting growing concerns among retail investors.

Coinbase CEO Brian Armstrong tried to calm nerves during a podcast appearance earlier this week. He pushed the long-term perspective angle, telling investors to stay patient despite the short-term pain. Armstrong’s comments came at a time when many retail traders were feeling the heat from sudden market moves. For more details, see MicroStrategy Boss Saylor Plans Massive New.

Grayscale Investments didn’t flinch either. The firm confirmed it would continue regular Bitcoin Trust purchases on February 23, undeterred by the price drop. The move aligns with Grayscale’s strategy of accumulating during volatile periods, betting that current weakness represents opportunity rather than disaster.

Binance made some risk management moves too. The exchange temporarily reduced leverage limits on certain pairs, including BTC/USDT, to protect users from getting wiped out in the volatility. It’s a smart move that shows exchanges are taking the market conditions seriously.

Tether saw massive inflows as traders fled to safety. The stablecoin issuer reported its market cap rose by about $500 million on February 23, as investors parked money in USDT to wait out the storm. That’s a clear sign people wanted stability over potential gains.

Galaxy Digital’s Mike Novogratz remained bullish despite the carnage. He called the price action part of crypto’s natural flow on February 23, arguing that institutional interest stays strong. Novogratz thinks the long-term outlook for Bitcoin remains solid, even with all the current chaos.

SEC Chair Gary Gensler added fuel to the fire with fresh comments about exchange oversight. He wants tighter rules on trading platforms, particularly around securities law compliance. The crypto community is already debating what his statements might mean for U.S.-based exchanges going forward.