So that February crash was brutal, right? If you were holding through late month, you already know the damage. Bitcoin got slammed down toward $60K, Ethereum dropped even harder, and it wasn't just random noise. The crash had real catalysts stacked on top of each other.

First, the geopolitical shock hit hard. Israel-Iran tensions escalated dramatically, and when that kind of headline drops, money instantly rotates into safe havens like the dollar and bonds. Crypto gets dumped first in those scenarios. But that was only part of the story. The macro backdrop was already cracking. Inflation came in hotter than expected in late February, which basically killed hopes for near-term rate cuts. When the Fed isn't cutting, the dollar strengthens and yields rise, which drains liquidity from risk assets like crypto.

Then the liquidation cascade kicked in. Over $88 million in Bitcoin longs got wiped out in a matter of hours, which accelerated the selling. Ethereum saw even heavier leverage positions blow up. On top of that, spot Bitcoin ETF inflows dried up completely, with nearly $24 billion in outflows over the month. Without institutional bid support, the market had no cushion.

The $60K level for Bitcoin was critical support, and once it cracked, fear took over. That's why the crypto market crashed so hard in late February, and why stability matters more than any single catalyst.