The #crypto market is experiencing a significant downturn as of February 11, 2026, primarily driven by a perfect storm of institutional de-leveraging and macroeconomic headwinds. $BTC inability to reclaim the $70,000 psychological resistance level triggered a massive wave of liquidations, with BTC testing lows near $66,000 today.
Key Drivers of the February 2026 Market Crash
🔹Basis Trade Collapse: Hedge funds have been aggressively unwinding positions as the lucrative arbitrage between spot ETFs and futures plummeted from 17% in 2024 to less than 5% in early 2026.
🔹Macroeconomic Uncertainty: A stronger-than-expected U.S. jobs report released on February 11 has signaled that the Federal Reserve may remain hawkish, dampening investor appetite for risk assets.
🔹AI Bubble Concerns: A sharp 7.5% drop in U.S. software stocks and fears of an AI bubble have triggered a "risk-off" sentiment, hitting speculative assets like crypto the hardest.
🔹Institutional De-leveraging: Massive outflows from spot Bitcoin ETFs totaling over $3 billion in January 2026 alone have turned a former price tailwind into a persistent headwind.
▪️Bitcoin (BTC) Price Decline - February 2026
▪️Market Sentiment and Technicals
The Crypto Fear and Greed Index is currently pinned at a reading of 9, indicating "Extreme Fear". Technically, Bitcoin has fallen below its 200-week exponential moving average (EMA) at $68,000, which historical data suggests could lead to a deeper correction toward the $60,000–$62,000 accumulation zone.
