Crypto Market Update - February 2026
Current Market Sentiment
As of February 23, 2026, cryptocurrencies are experiencing moderate declines, with Bitcoin down over 2%. This downturn is occurring amidst cautious sentiment on Wall Street and ongoing uncertainty in global markets. The broader crypto market is facing significant challenges regarding capital inflows and investor engagement.
USDT Supply Decline
Notably, the supply of the USDT stablecoin has decreased by more than $3 billion over the past two months, reflecting a bear market pattern reminiscent of 2022. On-chain data indicates that USDT has triggered a signal previously observed only at the market bottom in 2022. Historically, extreme liquidity stress has marked potential opportunity zones, but these opportunities typically arise only after confirming the exhaustion of selling pressure.
Bitcoin Network Activity
Bitcoin has recorded low network activity for six consecutive months. The last time such a trend was observed was in 2024, during which Bitcoin's price corrected by approximately 30%. This prolonged inactivity raises concerns about the cryptocurrency's current market dynamics.
Binance Buying Power Index
The Binance Buying Power Index has dropped to levels seen in previous market cycles. This data suggests a familiar pattern of compressed demand, indicating that the market may be catching its breath. If historical trends hold, this setup could statistically resolve to the upside.
ETF Flows
Recent sessions have shown net outflows from Bitcoin and Ethereum ETFs, indicating that Wall Street is distributing exposure despite significant price declines in recent weeks. This trend highlights the ongoing challenges faced by these leading cryptocurrencies.
Market Overview
Both Bitcoin and Ethereum have experienced sharp declines, with persistent selling pressure and a lack of structural demand becoming central issues in the crypto market. This situation is compounded by an overhang of latent supply, which continues to weigh on prices.
Additional Market Insights
On February 24, 2026, cocoa prices slumped by 5%, falling below $3000 for the first time since May 2023. Additionally, Bitcoin has seen a 50% decline since its all-time high, further emphasizing the current bearish sentiment in the market.