Bitcoin Slips Below $65K Amid Tariff Troubles and USDT Stress Signals
The cryptocurrency market faced notable fluctuations on February 23, 2026, with significant shifts in key assets like Bitcoin and Ether. As market conditions evolved, Bitcoin’s price slipped below the crucial threshold of $65,000, trading at approximately $64,409.84, a decline of 4.4% within 24 hours. Meanwhile, the broader economic environment presented challenges, leading analysts to express caution regarding Bitcoin’s future performance.
Current Market Overview
Bitcoin is currently experiencing a medium-term downward trend. Analyst Linh Tran from XS.com noted that without major catalysts, Bitcoin is likely to remain between two benchmarks: a support level of $65,000 and a resistance level at $70,000. There is concern that if current pressures continue, Bitcoin could retest the $60,000 mark, inviting deeper declines.
Other cryptocurrency assets also showed negative performance. As of the same date, Ether (ETH) was priced at $1,860.34, down 4.1%. XRP (XRP) dipped to $1.36, a 2% decrease, while Solana (SOL) traded at $78.37, marking a decline of 5.6%.
DeFi Market Resilience
- A notable development in decentralized finance (DeFi) occurred with Yield Basis, which capitalized on market volatility.
- Since the beginning of 2026, Yield Basis has recorded $769 million in trades, with over half after significant price drops on January 28.
- The project has generated approximately $12.15 million in fees from its v2 pools, resulting in a net profit of about $6.84 million for liquidity providers.
This trend indicates that while Bitcoin’s value may be under pressure, specific sectors within the DeFi ecosystem are still thriving, particularly through arbitrage and liquidation activities during tumultuous periods.
Liquidity Concerns Surrounding USDT
Notably, Tether’s USDT stablecoin is exhibiting signs of liquidity strain. Recent reports from CryptoQuant indicate a decrease of $3 billion in USDT supply over 60 days. This represents a significant contraction, marking only the second instance of such a decline. February alone has seen a reduction of approximately $1.5 billion in USDT supply, suggesting that substantial holdings are being withdrawn from the crypto market.
This situation is reminiscent of liquidity challenges during the FTX collapse, which preceded Bitcoin’s fall to around $16,000. Market analysts are closely monitoring these developments as they may indicate larger trends within the cryptocurrency landscape.
As we continue to observe these unfolding events, the crypto community is encouraged to remain vigilant and informed. For real-time updates and insights, follow us at Filmogaz.com.
