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Bitcoin is plummeting. The leading cryptocurrency has lost 15% in February 2026, dropping from $45,000 to about $38,250 currently. Traders are seeing red, and anxiety is rising across the crypto sector.
Several factors explain this sharp decline. The Fed raised interest rates again last week, strengthening the dollar against riskier assets like Bitcoin. Meanwhile, China is tightening its stance on cryptos while Europe is preparing even stricter regulations. Investors are fleeing to safe havens. “It’s a bloodbath,” says a Wall Street trader who prefers to remain anonymous. The macroeconomic context is heavily weighing on digital markets.
There’s little to reassure holders.
Despite the fall, some remain confident in the long term. Large hedge funds are holding onto their Bitcoin positions, betting on a future rebound. They are banking on massive investments in blockchain continuing despite the current storm. Goldman Sachs maintains its optimistic forecasts for 2027, even though the bank admits that “2026 will likely be chaotic.” Traditional financial institutions are not completely abandoning the crypto ship. Some are even quietly accumulating as prices drop.
Small investors are panicking more. Exchange platforms are seeing their volumes explode – a sign that many are trying to limit the damage. Coinbase reports a 300% increase in sell transactions since the beginning of the month. “My clients are calling non-stop to sell,” confides a financial advisor from Chicago.
And it gets worse every day.
Regulation plays a key role in this debacle. The European Union will discuss new crypto laws at the finance ministers’ summit in March. Rumors suggest drastic restrictions on exchanges. The European Commission wants to regulate the sector more strictly, which worries market players. Political decisions can make or break Bitcoin in a matter of hours. Traders scrutinize every official statement.
Yet, blockchain continues to evolve. Technical innovations could stabilize the market in the long run, developers hope. But for now, technology is not enough to reassure investors frightened by volatility. Central banks are still studying the impact of digital currencies on the traditional financial system. They remain cautious about Bitcoin. Related coverage: Institutional investors move away from bitcoin.
On February 15, Coinbase increased its transaction fees by 20%. Bad timing. Platform users are outraged, fearing their profits will erode even faster. “Coinbase is bleeding us dry,” complains an investor on Reddit. The decision has exacerbated sales, creating a vicious cycle. The largest American crypto platform has not commented on the criticism.
JPMorgan Chase revised its Bitcoin forecasts downward on February 20. The bank cites “market instability and economic uncertainties” in its report. The price target for 2026 drops from $60,000 to $42,000. Institutional investors take note. When JPMorgan speaks, Wall Street listens. The announcement has cooled the already tense atmosphere.
Vitalik Buterin tried to reassure at a conference in Singapore on February 25. The Ethereum co-founder advocates for more transparency in the crypto sector. His words were not enough to calm the storm. Bitcoin continues to fall despite interventions from the sector’s iconic figures.
A Financial Times survey reveals that 60% of individual investors want to reduce their crypto exposure. Published on February 26, the poll shows the extent of the mistrust. “People are scared,” summarizes the analyst who conducted the study. No reaction from regulators yet.
On February 27, Binance temporarily suspended Bitcoin withdrawals. Technical issues, says the platform. Users are even more worried. “When Binance has problems, everyone trembles,” notes a crypto expert. The world’s largest platform has not provided a timeline for returning to normal. Related coverage: Bitcoin drops sharply, devastating companies that.
Grayscale remains optimistic nonetheless. The fund continues to buy Bitcoin, asserting that “the long-term fundamentals have not changed.” A stance that contrasts with the prevailing panic. Grayscale accumulates while others sell – a classic but risky strategy.
The SEC is closely monitoring the crypto market, says a spokesperson on February 28. No immediate action is planned, but regulators’ attention is growing. Investors are watching for any signs of regulatory tightening. An intervention could push Bitcoin even lower.
MicroStrategy loses $120 million on its Bitcoin holdings this quarter. The company remains committed to its accumulation strategy despite the losses. “We are staying the course,” says the CEO during a conference call. MicroStrategy’s shares are also plunging.
BlackRock has quietly reduced its Bitcoin position by 8%, according to documents filed with the SEC on March 1. The asset management giant, which holds over $2 billion in crypto, justifies this decision by “a reassessment of market risks.” This sale represents about $160 million less in exposure.
The psychological impact on Asian markets is also intensifying. Tokyo and Seoul are recording record sales volumes on their local platforms, with an additional 3% drop in Bitcoin during Asian trading hours.
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