BlockBeats news: On February 24, Associate Researcher Min Jung of Presto Research stated that Bitcoin’s drop below $63,000 appears to reflect a broad deterioration in cryptocurrency market sentiment rather than a single fundamental catalyst. In the short term, macroeconomic headlines—particularly those surrounding tariffs and resurgent geopolitical uncertainty—are intensifying risk-off sentiment toward digital assets.
Jung added: "Notably, despite traditional risk assets maintaining relative resilience, cryptocurrencies have recently underperformed. This divergence suggests that the sell-off is not purely driven by macro factors, but also reflects weakening marginal demand, thinning liquidity conditions, and ongoing deleveraging within the crypto-native markets."
Andri Fauzan Adziima, Head of Research at Bitrue, said: “We’ve witnessed massive long liquidations, hundreds of millions of dollars wiped out, funding rates remaining negative, and open interest sharply declining—clear signs of a bearish bias in the futures market. Short-term holders have suffered heavy losses, but long-term holders have not yet begun large-scale selling; on-chain HODL signals indicate that some are quietly accumulating during this strategic risk-reduction phase.”
Adziima noted that the $60,000–$63,000 range is a key support area for Bitcoin. If the price holds at or above this level, the market could benefit from the pressure on short positions caused by negative funding rates, creating conditions for a classic "clean-out squeeze." The analyst added that potential relief in macroeconomic conditions or the return of ETF inflows could further support this upward movement.
Adziima noted that, on the other hand, a break below $60,000 could open the door to a decline toward the middle of $55,000, or even as low as $47,000, in the worst-case scenario, as worsening macroeconomic conditions accelerate cascading liquidations.
Adziima said: "At that point, we may ultimately force some long-term holders to capitulate, turning this into a deeper extension of the bear market before the true cycle bottom arrives."