Bitcoin dips toward $63,000 as “extreme fear” grips crypto traders
Bitcoin slipped toward the $63,000 level as market sentiment turned to extreme fear, prompting traders to sell amid a wider crypto market downturn. Analysts say ongoing deleveraging, thin liquidity, and persistent selling pressure are weighing on prices. Negative ETF flows have added to the strain, reinforcing caution as investors reduce exposure to riskier assets.
On Tuesday, Bitcoin hovered near $63,000 while global markets adopted a risk-off stance. This broader pullback in risk appetite has pressured digital assets alongside other volatile investments. With liquidity remaining light and confidence fragile, analysts warn that price swings could stay elevated until flows stabilize and leverage is further cleared.
What’s driving the slide
Analysts cited a combination of macro uncertainty and crypto-specific positioning stress. In the provided commentary, Presto Research’s Min Jung described the move as reflecting deteriorating sentiment rather than a single fundamental catalyst, while noting that tariffs and geopolitical headlines can amplify a risk-off tone.
Market behavior has also diverged at times from traditional risk assets, which some analysts interpret as a sign of weaker crypto-native demand, thinner liquidity, and ongoing leverage reduction conditions that can magnify downside moves when prices fall quickly.
Bitcoin tests $63,000 in extreme fear and why sentiment matters
Sentiment indicators tied to “fear and greed” readings have been flashing deep risk aversion. Crypto “fear/greed” dashboards track inputs like volatility, momentum, and other market measures; recent readings have been in “fear” territory, underscoring how cautious positioning has become.
Deleveraging and ETF outflows in focus
The selloff has coincided with persistent net outflows from U.S. spot bitcoin ETFs in early 2026, a trend that market observers say can reduce marginal bid support during drawdowns.
Separate market reporting has also tied recent weakness to tariff uncertainty and broader risk-off cross-asset conditions.
Critical support zone and downside scenarios
In the provided analyst view, the $60,000–$63,000 area is framed as an important support zone. A sustained hold could set the stage for a rebound if negative funding rates pressure short sellers and macro conditions stabilize. A clean break below $60,000, the analyst warned, could open the door to a deeper move potentially intensified by cascading liquidations.
Context & Analysis
A common pattern during sharp selloffs is a “leverage flush,” where forced liquidations and falling open interest drive rapid declines. The provided analyst commentary argues that a “full-blown capitulation” would typically involve broader long-term holder selling—something they said was not yet clearly visible. Separately, mainstream market coverage has emphasized that tariff uncertainty and broader risk-off sentiment have been pressuring crypto prices.
Concluding Remarks
Near-term direction is likely to hinge on whether bitcoin holds the ~$60,000–$63,000 zone and whether macro conditions and ETF flows stabilize. Traders are watching for either a short-covering bounce if positioning becomes too one-sided, or a deeper drawdown if support fails and liquidation pressure accelerates.
FAQs
Q : Why did Bitcoin testing $63,000 in extreme fear become a key headline?
A : Because bitcoin traded near a widely watched round-number level while sentiment gauges showed unusually risk-off positioning and sustained selling pressure.
Q : What does “extreme fear” mean in crypto markets?
A : It generally indicates very bearish sentiment and strong risk aversion, often seen during periods of high volatility and sharp drawdowns.
Q : Are ETF flows affecting bitcoin’s price?
A : Yes. Negative net flows from spot bitcoin ETFs can reduce incremental demand, which tends to matter more during market selloffs.
Q : What levels are traders watching next?
A : Many are watching the ~$60,000–$63,000 zone. A break below $60,000 is often cited as increasing the risk of deeper downside.
Q : Is this a “capitulation” event?
A : Some analysts say it looks more like a leverage-driven flush rather than broad capitulation by long-term holders.
Q : What macro issues have been cited alongside the crypto drop?
A : Recent coverage points to tariff uncertainty and broader risk-off conditions weighing on overall investor appetite.
Facts
Event
Bitcoin trades near $63,000 amid “extreme fear” sentiment and ongoing crypto selloffDate/Time
2026-02-24T01:30:00-05:00 (price reference time in provided text)Entities
Bitcoin (BTC); Ether (ETH); U.S. spot bitcoin ETFs; Presto Research; BitrueFigures
~$63,000 price area; ETF outflows trend noted in early 2026 coverageQuotes (from provided text)
“Bitcoin’s move below $63,000 appears to reflect a broad deterioration in crypto sentiment…” Min Jung, Presto Research
“We’ve seen massive long liquidations…” Andri Fauzan Adziima, Bitrue
Sources
See below