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Highlights
- Bitcoin extends multi-week decline amid persistent risk-off sentiment.
- US-listed Bitcoin ETFs record a fourth week of net outflows.
- Fear and Greed Index falls into extreme fear zone.
- Stronger US dollar and hawkish Fed tone pressure risk assets.
- Institutional activity shows mixed positioning despite price weakness.
Bitcoin traded at US$66,738.23 on 19 February 2026, gaining 0.45% on the day but remaining down 4.33% over five days and 27.99% over the past month. The prolonged decline reflects a broader shift in risk appetite, with the digital asset moving in line with weakness in technology-linked assets and failing to hold earlier rebounds.
Sentiment Weakens Despite Adoption Progress
Market mood in the crypto segment has deteriorated even as traditional financial institutions continue to expand their involvement. Price action has not reflected these developments, reinforcing cautious positioning and keeping overall sentiment subdued.
The Fear and Greed Index dropped to 10 out of 100, placing the market in extreme fear territory, highlighting the scale of the current risk aversion.
ETF Outflows Add to Downward Momentum
Fund flows have remained a key headwind. US-listed Bitcoin exchange-traded funds recorded US$360 million in net withdrawals last week, marking a fourth consecutive week of outflows. Persistent redemptions have coincided with the latest leg lower in prices.
Macro Forces and Dollar Strength
Volatility in global equities, driven partly by uncertainty over the economic impact of artificial intelligence spending, has fed into crypto markets. At the same time, a firmer US dollar — which recently climbed to a two-week high — has added pressure, as stronger dollar conditions typically weigh on risk-oriented assets.
Hawkish signals from the Federal Reserve also reduced expectations for near-term rate cuts, further tightening financial conditions.
Key Levels and Positioning Debate
Investors remain divided on whether Bitcoin has established a durable base. The US$60,000 level is widely viewed as a critical support zone, though its resilience is seen as dependent on broader risk appetite.
Institutional positioning has been mixed, with some large portfolios trimming exposure while others increased allocations to both Bitcoin and Ethereum-linked investment vehicles.
New Structured Finance Activity
In parallel with the price decline, the digital asset ecosystem has seen the completion of a US$188 million Bitcoin-backed bond issuance, supported by more than 4,000 Bitcoin as collateral and receiving an investment-grade rating for the majority of the structure. The transaction reflects continued development of securitised products linked to digital assets.
Consolidation Phase in Focus
Market participants expect consolidation until a new catalyst emerges. Potential drivers include major policy decisions, shifts in liquidity conditions or a change in fund flow trends.
FAQs
- Why has Bitcoin fallen over the past month?
The decline is linked to ETF outflows, stronger US dollar conditions, hawkish Federal Reserve signals and weaker risk appetite. - What does the extreme fear reading indicate?
It reflects heightened caution among investors and fragile market sentiment. - What price level is being watched closely?
The US$60,000 zone is widely seen as a key support level.
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