In early February 2026, Bitcoin fell below the $70,000 mark for the first time since late 2024. The main cryptocurrency’s price dropped to a yearly low of around $60,900, and the total decline over a short period exceeded 14%. This was the sharpest drop in Bitcoin over the past three years.
As of February 2026, Bitcoin is trading at approximately $68,500. Compared to the all-time high of October 2025 — $126,000 — the price has nearly halved. Market capitalization* over the same period decreased from $2.48 trillion to $1.37 trillion, and in just the last month the market lost more than $1 trillion.
* Market capitalization is the total value of an asset in the market, calculated as the current coin price multiplied by the number of coins in circulation. This indicator is used to assess the “size” of a cryptocurrency and its position among other assets. Still, it is important to understand that capitalization is not equal to the actual amount of invested money: when the price falls, capitalization decreases automatically because the entire supply of coins is revalued at a lower price.
Why Bitcoin crashed
The main reason Bitcoin crashed is the outflow of capital from cryptocurrency funds, including BTC-ETFs*. In the past month, net outflows totaled about $500 million, and the negative trend has persisted for the third consecutive week.
* A BTC-ETF is an exchange-traded fund that allows investors to gain exposure to Bitcoin through traditional stock exchanges without buying the cryptocurrency directly.
This situation reflects the overall market sentiment. The Fear and Greed Index* in February 2026 dropped to 9 points out of 100, indicating extreme fear among investors. Against this backdrop, Bitcoin crashed by more than 23% over the month — from $90,400 to around $69,000.
* The Fear and Greed Index is a market sentiment indicator measured on a scale from 0 to 100 that reflects the prevailing emotions of investors, from panic to euphoria. It is calculated based on several factors, including volatility, price dynamics, trading volumes, Bitcoin dominance, and user interest on the internet. Extremely low values indicate fear and mass sell-offs, while high values suggest an overheated market and excessive optimism.
Another factor behind the crash is the reduction of trading positions by large market participants: banks, funds, and institutional investors. Many of them believe that the phase of active Bitcoin growth within the four-year halving* cycle has already ended, so they are taking profits and reducing risk.
* Halving is a programmed event in the Bitcoin protocol in which, roughly once every four years, the reward for miners per mined block is cut in half. This mechanism limits the rate at which new coins are created, making Bitcoin scarcer.
Among the global reasons for the crash is also macroeconomic instability. Rising geopolitical tensions and intergovernmental trade conflicts are prompting investors to allocate capital to more traditional safe-haven assets, such as gold and other precious metals.
Political and regulatory factors are also adding pressure to the market. In the United States, the CLARITY Act, intended to provide clearer crypto-asset regulation, was blocked. This increased uncertainty became another reason why Bitcoin crashed.
In addition, investors fear tighter policy from the U.S. Federal Reserve. A potential key rate hike traditionally reduces the attractiveness of risk assets, and cryptocurrencies tend to fall on such expectations.
The slowdown in the growth of major tech stocks has also affected price dynamics. Reduced growth rates at companies like Alphabet, Apple, and Microsoft have increased pressure on the market, as a noticeable correlation* has been observed between the tech sector and cryptocurrencies since 2018.
* Correlation is a statistical measure that reflects the degree of relationship between the price movements of different assets. If the correlation is positive, assets usually rise and fall together; if negative, they move in opposite directions.
Bitcoin crashed: should we expect a recovery?
Analysts’ opinions about Bitcoin’s future price are divided. Some believe that a local “bottom” has already formed and the market is ready for a new growth cycle. Others allow for further decline.
Some experts predict a drop to $53,000 in the short term, while the most pessimistic estimates allow for a fall even to $10,000. However, such a scenario is considered unlikely.
The fact that Bitcoin crashed below $70,000 is already putting pressure on the mining industry. Many analysts consider this level critical for Bitcoin mining profitability. If the price stays below it for a long time, some miners may shut down equipment and begin selling accumulated coins, which would increase pressure on the market.
At the same time, extremely low values of the Fear and Greed Index often coincide with turning points in the crypto market. Therefore, some analysts believe that conditions for a new growth phase are forming right now.
Some experts are confident that despite the crash, the market is gradually preparing for the next rally. Institutional investors continue to monitor analysts’ signals and macroeconomic conditions to determine the optimal moment to return to crypto assets.