Having failed to reclaim $70,000 during the recovery started on February 24, Bitcoin (BTC) abruptly started a crash in the early hours of Friday, February 27, falling about 3.3% within just four hours.
Indeed, BTC’s swift collapse from $68,000 to its press time price of $65,770 brought into sharp focus the cryptocurrency’s next critical support zone at $64,000.
Specifically, the $64,000 level serves as an important zone for Bitcoin, and a plunge below could not only send the world’s premier digital asset toward new 2026 lows but trigger widespread contagion in the U.S. stock market, per the analysis of Bloomberg’s top commodity analyst, Mike McGlone.
Could Bitcoin crash the market today?
Notably, the cryptocurrency already breached the closest support zone that was holding it as Thursday rolled into Friday by falling below $66,492 and is, at press time, precipitously close to the intermediate safety of $65,489.
McGlone’s analysis is made even more salient by a lack of direct cause for the latest BTC downturn, other than a potential contagion from the stock market.
Indeed, February 26 proved an especially bloody session for some of the largest companies in the U.S., with Nvidia (NASDAQ: NVDA), for example, erasing about $260 billion from its valuation during the day.
Elsewhere, even though direct cryptocurrency market catalysts for the plunge appear absent, it appears probably that Bitcoin is, at press time on February 27, reacting to a new spike in geopolitical instability.
Why Bitcoin price is crashing today
The night between Thursday and Friday was rife with contradictory reports on the state of the ongoing negotiations between the U.S. and Iran, while morning brought reports that the U.S. has allowed its embassy staff to leave Jerusalem, that China has urged its citizens to leave the Islamic Republic, and that Israel has summoned its air defense reservists.
Considering the military buildup in the region and heightened tensions, the latest series of news has reignited the expectation that a regional conflict of unpredictable scale might erupt before March.
Perhaps the strongest backing for the reading that tensions with Iran are to blame for Bitcoin’s sharp drop can be found in the commodity markets.
Specifically, despite remaining relatively flat in the daily charts, the hourly timeframes show that both Gold and Silver – the traditional ‘haven’ assets – have started spiking in value early on Friday.
In approximately 30 minutes, silver rose by about 1%, and gold is up by nearly $20 and is, at press time, back above $5,200.
Featured image via Shutterstock
