Bitcoin heads for worst month since mid bear cycle

The largest cryptocurrency was down about 20% in February and had fallen roughly 47% from its October peak above $125,000, according to market prices cited in the report.

The selloff has coincided with persistent withdrawals from U.S.-listed spot Bitcoin exchange-traded funds. The group’s cumulative net flow for 2026 was reported at about negative $4.5 billion, highlighting a sharp reversal from the early inflow-driven phase that followed the products’ debut.

Broader digital-asset investment products have also seen sustained pressure, according to weekly flow data from CoinShares’ fund-flow reporting that showed consecutive weeks of net outflows and a pullback in trading activity. In the week referenced in the report, CoinShares recorded total digital-asset outflows of $173 million, with regional divergence between the U.S. and other markets.

Bitcoin and Ethereum were among the major contributors to the weekly outflows in CoinShares’ data, while some altcoin products still attracted inflows, the report said. 

Market positioning has reflected the downturn. In one sign of de-risking, flows into and out of crypto ETPs remained negative even as spot prices attempted to stabilize after prior drops below the mid-$60,000 range earlier in the month, based on the same CoinShares reporting referenced by market summaries.

The month’s decline has unfolded against a shifting macro backdrop that has repeatedly whipsawed risk assets in 2026, with traders recalibrating the outlook for growth, inflation and the Federal Reserve’s rate path. Moves in rates and the U.S. dollar have remained closely watched by crypto investors because they can change the relative appeal of speculative and non-yielding assets.

For now, the focus is on whether the current pullback represents a temporary drawdown inside a still-volatile market structure, or a deeper risk-off phase reinforced by sustained fund outflows. With Bitcoin’s February performance already near levels last seen during the 2022 downturn, the next sessions are set to be shaped by the durability of ETF demand, the direction of rates expectations, and whether spot buying emerges around widely watched price zones.