(C) IFC Markets
SEOUL — The cryptocurrency market is reeling as Bitcoin, the world’s flagship digital asset, fell below the $63,000 (approx. 91 million KRW) mark on Tuesday. This latest slide represents a staggering 50% drop from its all-time high recorded just four months ago in October 2024, signaling a period of intense volatility fueled by geopolitical tensions and shifting U.S. trade policies.
A Rapid Descent from the Peak
According to data from the global cryptocurrency platform CoinMarketCap, Bitcoin was trading at $62,710 as of 2:25 PM on February 24, marking a 3.6% decline within a 24-hour window. This downward trajectory is particularly stark when compared to the peak of $126,000 reached in October last year. Since the beginning of 2026 alone, the asset has shed 29% of its value, erasing billions in market capitalization.
The domestic South Korean market mirrored this global retreat. On the local exchange Bithumb, Bitcoin was quoted at 92,615,000 KRW, down 3.4% from the previous day's high of nearly 96 million KRW.
'Extreme Fear' Grips the Market
The sell-off is being driven by a massive "risk-off" sentiment as investors scramble to exit speculative positions in favor of traditional safe-haven assets. The Crypto Fear & Greed Index, a key barometer of market sentiment, plummeted to a score of 5 out of 100, indicating a state of "Extreme Fear." Historically, a score near zero suggests that investors are overwhelmingly worried, often leading to panic selling, while a score toward 100 indicates market overheating and irrational exuberance.
The "Trump Factor" and Global Instability
Market analysts point to a "perfect storm" of political and macroeconomic factors behind the crash:
Tariff Turmoil: Despite the U.S. Supreme Court recently ruling certain reciprocal tariffs as unconstitutional, President Donald Trump has continued to announce aggressive new trade policies. This ongoing friction has destabilized global financial markets and dampened the appetite for high-risk digital assets.
Middle East Tensions: Geopolitical risks reached a boiling point on February 19, when President Trump issued a 15-day ultimatum to Iran regarding nuclear negotiations. The explicit mention of potential military action has sent shockwaves through the markets, prompting investors to flee volatile sectors.
Broader Market Impact
The carnage was not limited to Bitcoin. Ethereum, the second-largest cryptocurrency by market cap, also felt the sting, dropping 3.4% to trade at $1,816. Major altcoins across the board followed suit, confirming a synchronized retreat across the entire digital asset ecosystem.
CNBC noted in a recent report that "Bitcoin remains hyper-sensitive to changes in global liquidity and political stability," warning that "if the chaos surrounding U.S. tariff policies persists, the floor for the current decline may still be further off."
Looking Ahead
As the 15-day window for Iran negotiations closes and the White House doubles down on its protectionist stance, the cryptocurrency market faces its most significant test since the 2022 winter. For now, the "digital gold" narrative appears to be on hold as the reality of a fragmented and tense global economy takes center stage.
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