THE WEEK CRYPTO WENT CRAZY

THE WEEK CRYPTO WENT CRAZY

What really happened in crypto from February 23 to March 1, 2026

March 1, 2026  •  6 min read  •  Sponsored by Golden Exchange

✍️ by The Crypto Weekly Team

If you follow crypto, you already know this: no two weeks are ever the same.

But this past week — from February 23 to March 1, 2026 — was something else entirely. In just seven days, the crypto market survived a tariff shock, a massive short squeeze, and a geopolitical crisis in the Middle East.

In short, it was one of the most eventful crypto weeks of 2026.

So, what exactly happened? And what does it mean for you? Let’s break it all down — simply, clearly, and step by step.

What Caused Crypto to Crash on Monday?

The week started on a rough note. On Monday, February 23, the US President announced new import taxes – also called tariffs – on goods from major trading partners.

As a result, Bitcoin dropped from $67,600 to $64,700 in less than two hours.

Why does a tax announcement affect crypto? Because crypto trades 24 hours a day, 7 days a week. So when scary news breaks on a Sunday night, investors sell crypto first — long before the stock market even opens on Monday morning.

Additionally, open interest in Bitcoin derivatives fell sharply from $38.3 billion to $19.5 billion. That means a huge amount of leveraged bets got wiped out almost overnight.

Wild Side Story — A Bitcoin Miner With No Bitcoin! On the same day, crypto miner Bitdeer sold every Bitcoin it owned — all 1,132 BTC — to fund AI data centers. In other words, a Bitcoin mining company with zero Bitcoin. It’s a bit like a bakery that sold all its bread to open a gym.

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How Did Wednesday’s Short Squeeze Work?

Here’s where things get interesting. By Wednesday, February 25, the market made a dramatic U-turn.

Bitcoin surged 6% in a single day. On top of that, major altcoins like Ethereum, Solana, and Dogecoin jumped more than 10% each. So what triggered this sudden reversal?

The answer is a short squeeze — and it’s easier to understand than it sounds.

What Is a Short Squeeze? (Plain and Simple)Imagine 10 people bet their lunch money that it would rain tomorrow. The next day, it’s bright and sunny. Now they all scramble to take back their bets at the same time — causing a big rush. In the same way, too many traders had bet that crypto prices would fall. When prices rose instead, they all had to buy at once — pushing prices even higher. That rush is called a short squeeze.

Furthermore, US Bitcoin ETFs recorded $257 million in inflows on that single day — the highest figure in three weeks. That tells us big institutional money was quietly coming back into the market.

Overall, nearly $400 million in bad short bets were liquidated within 24 hours. For context, that’s a lot of people losing a lot of money very fast.

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Why Did Crypto Drop Again on Saturday?

Unfortunately, Wednesday’s gains didn’t last long.

On Saturday, February 28, news broke that Iran had launched a military strike on Israel. US forces responded shortly after. Because crypto markets never close, they absorbed the panic selling immediately — even on a Saturday night.

As a direct result, Bitcoin fell 4%, Ethereum dropped 9%, and over $500 million in trades were liquidated. Most of those losses came from long positions — traders who had bet prices would go up.

This highlights an important point: geopolitical events can move crypto prices just as fast as economic news. Sometimes even faster.

What Good News Happened That Nobody Talked About?

Amid all the chaos this week, several positive developments quietly took place. In fact, some of them could have a big long-term impact on the crypto market.

Morgan Stanley Is Getting Into Crypto

First and foremost, Morgan Stanley confirmed it plans to offer Bitcoin buying, selling, lending, and custody services to its clients. This is a major step. Morgan Stanley manages trillions of dollars — and when those clients gain access to Bitcoin, demand grows significantly.

Indiana Allows Pension Funds to Buy Bitcoin

Moreover, the state of Indiana passed a law allowing public pension funds to invest in Bitcoin ETFs. This means retirement savings for thousands of people could soon be partly invested in Bitcoin — creating stable, long-term buying pressure.

MetaMask Launches a Crypto Payment Card

In addition, MetaMask launched a self-custodial Mastercard in all 50 US states. What makes it special? You keep your crypto in your own wallet until the moment you spend it. You even earn DeFi interest on money you haven’t used yet. That’s the future of everyday payments.

DeFi App Aave Passes $1 Trillion in Loans

Finally, Aave — a decentralized lending app — crossed $1 trillion in total loans processed. No bank. No loan officers. Just smart contracts running on a blockchain. That’s genuinely groundbreaking.

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What Does This Mean for Crypto Investors?

After everything that happened this week, you might be wondering: what’s the takeaway? Here’s a clear and honest summary.

Short-Term: Expect More Volatility

To begin with, Bitcoin is still trading in a range between $60,000 and $70,000. Until there’s a clear break above or below that range, sharp swings in either direction are likely to continue.

Long-Term: The Foundations Are Getting Stronger

However, if you zoom out, the big picture looks different from previous bear markets. This time around, the US government holds Bitcoin, major banks are offering crypto services, and pension funds are starting to invest. That structural support simply did not exist in 2018 or 2022.

For Everyday People: Stay Calm, Stay Informed

Above all, do not make investment decisions based on fear or excitement. The Fear and Greed Index is currently in Extreme Fear — a level that has historically come just before major recoveries. But it has also come before further drops. Nobody knows which way it goes next.

Therefore, only invest what you can afford to lose. Stay curious, keep learning, and watch the key levels.

Thanks for reading! Share with someone who keeps asking: “Should I buy Bitcoin?”

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⚠️  For educational purposes only. Not financial advice. Always do your own research.