Bitcoin has dropped 22% in February 2026, marking its steepest monthly slide since June 2022. The decline follows a surge in regulatory scrutiny and a sharp pullback in institutional crypto investment.
- Bitcoin fell 22% in February 2026, its worst monthly performance since June 2022
- Bitcoin closed at $43,100, down from $55,300 at the start of the month
- Ethereum dropped 18% to $2,875; CoinDesk Crypto Index fell 19%
- Total crypto market cap declined to $1.8 trillion
- ETF outflows reached $1.2 billion, the largest since January 2024
- DeFi protocols lost 40% in total value locked
Bitcoin has entered its worst monthly performance since the June 2022 market collapse, shedding 22% in February 2026. The digital asset closed the month at $43,100, down from $55,300 at the start, reflecting a sustained sell-off across major crypto exchanges. Market analysts attribute the slide to heightened regulatory pressure from U.S. and European authorities, including new enforcement actions targeting unregistered crypto lending platforms and expanded scrutiny of stablecoin issuers. The broader cryptocurrency market followed suit, with Ethereum falling 18% to $2,875 and the CoinDesk Crypto Index dropping 19% over the same period. Total market capitalization for all cryptocurrencies fell to $1.8 trillion, the lowest level since early 2024. Institutional investors have been notably retreating, with exchange-traded fund (ETF) outflows totaling $1.2 billion in the month, the largest since January 2024. Key indicators point to deteriorating investor sentiment. The CME Bitcoin Futures Open Interest declined by 14%, while the Bitcoin Fear & Greed Index fell to 21, signaling extreme market fear. These dynamics coincide with rising U.S. Treasury yields and a stronger dollar, which have reduced the appeal of non-yielding assets such as Bitcoin. The downturn is impacting both retail and institutional players. Major crypto firms including Coinbase and Kraken reported a 37% drop in daily transaction volume, while decentralized finance (DeFi) protocols saw a 40% decline in total value locked. Regulators have signaled continued oversight, with the SEC issuing new guidance on crypto asset classification, heightening compliance risks for global market participants.