Welcome to US Crypto News Morning Briefing. A critical overview of the most important developments in cryptocurrencies of the day.
Have some coffee and calm down. Markets are changing, fear is rising, and Bitcoin is dancing to the rhythm of global tension. From geopolitical sparks to shadow traders making millions of dollars, the crypto pioneer is in crisis, swinging between consolidation and sudden dramatic moves.
Crypto News Today: Geopolitical Tensions and Market Fears Rock Bitcoin
Bitcoin plunged ahead of the US market open on Tuesday, extending a shaky start to 2026 amid geopolitical and macroeconomic concerns.
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The Pioneer cryptocurrency fell 1.7% to around $67,600, reflecting weakness in stock futures. The Nasdaq 100 fell 0.9% and the S&P 500 fell 0.6%, indicating a soft start for Wall Street.
Bitcoin’s correlation with high-beta tech stocks has strengthened in recent months, making the crypto bellwether increasingly sensitive to stock market risk-off sentiment.
“Investors are becoming cautious amid rising tensions over Iran, renewed debate over the impact of AI on the broader economy, and uncertainty over whether the Federal Reserve will cut interest rates after recent inflation data,” Walter Bloomberg reported in X.
The macro backdrop is contributing to the sustained outflows from US-listed Bitcoin ETFs. Investors withdrew $360 million last week alone, the fourth straight week of net outflows.
A combination of geopolitical uncertainty, ETF withdrawals, and unwinding leverage has sent Bitcoin down more than 50% from its October 2025 high of $126,000.
“Analysts currently see $60,000 as the key short-term support, but further macro shocks could push prices back towards the $50,000 range,” Walter added.
This is in line with Galaxy Digital’s recent forecast, where head of research Alex Thorne estimated that Bitcoin is trending towards its 200-week average of $58,000.
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Meanwhile, market sentiment is at levels not seen since the depths of the bear market in 2022, with only 55% of Bitcoin supply currently in profit and around 10 million BTC in losses.
Elsewhere, CryptoQuant’s Fear and Greed Index is 10, firmly in the “extreme fear” zone, suggesting extreme vigilance.
Shadow shorts and safe haven bets highlight risk-off mood in cryptocurrencies
What makes the market even more tense is the existence of aggressive short positions. A less popular trader reportedly made $7 million shorting multiple crypto assets, including $3.7 million in Ethereum and $1.45 million in ENA.
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These traders are largely anonymous, but they represent the growing sophistication and boldness of market participants who are betting on downside risk.
Meanwhile, broader investor behavior also reflects a flight to a perceived sense of safety. A February global fund manager survey conducted by Bank of America (BofA) highlighted gold as the most crowded trade, with 50% of managers holding long positions, and top US tech stocks (NVIDIA, Alphabet, Apple, Amazon, Microsoft, Meta, Tesla) ranked second, cited by 20% of respondents.
This preference for traditional hedging reflects the growing risk aversion in financial markets. Despite the current turmoil, investors should not act in panic. Bitcoin’s history shows that after a sharp decline, Bitcoin often consolidates in value before returning to its long-term trend.
However, geopolitical flashpoints, ETF outflows, intensive short selling activity, and extreme fear readings suggest market volatility may persist in the near term.
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Here’s a rundown of US crypto news to follow today.
