In 2025, the crypto market showed two very different sides. It started with excitement. Bitcoin [BTC] surged to a record high of $125,000 in the last quarter, driven by strong institutional interest and bullish sentiment.
But the rally didn’t last.
Now, Bitcoin has fallen to around $66,888, down nearly 46% from its peak. This isn’t just a small correction; it signals a major shift in market mood.
Ash Crypto saw a similar pattern and said,
What pushed Bitcoin into bearish hands?
Bitcoin’s price around $66,888 shows that the market is stuck in a mental tug-of-war.
On one side, there’s fear about dormant supply, around 3.5 to 4 million BTC that have been inactive for years. Ash Crypto worries that advances in quantum computing could make old wallets vulnerable.
Source: X
If even part of those coins suddenly moved, it could increase supply and hurt prices.
On the other side, the data tells a calmer story. Since 2020, institutions and ETFs have bought about 2.5 to 3 million BTC.
In this cycle alone, nearly 13 to 14 million BTC have changed hands, the biggest shift in history, without breaking the system.
However, Bitcoin is not frozen in time. Developers are already working on quantum-resistant solutions, and newer wallets are more secure.
Therefore, the analyst believes that the current price weakness may not be a collapse; it may just be uncertainty being priced in.
Simply put, the crypto market may feel like it’s slowly falling apart, but Bitcoin’s network is telling a more balanced story.
Extreme fear grips the market
On the metrics side, by February 2026, fear had taken over the market. The Crypto Fear and Greed Index dropped to an extreme low of five on the 12th of February, showing how nervous investors have become.
This is a big change from the positive mood seen during October’s peak. Since then, fear has taken control, with only a short burst of hope around the New Year that quickly disappeared.
While traders are panicking, Bitcoin’s system is quietly adjusting. After Bitcoin fell from its $125,000 high, mining difficulty dropped.
Source: Glassnode
When prices fall, weaker miners shut down their machines. The system then makes mining easier for the remaining miners, helping them stay profitable and keeping the network stable.
But there is a warning sign. The number of active Bitcoin users is falling. After reaching a peak on the 6th of February, active addresses have continued to decline.
Source: Glassnode
This means fewer people are using the network every day. In simple terms, current prices are not being supported by strong, real demand. Retail investors are losing interest, and trading activity is also slowing down.
Bitcoin ETF analysis and more
As a result, prices are now more influenced by big institutions reducing risk and by weaker demand for Spot Bitcoin ETFs.
Even though there was a small $133 million inflow on the 13th of February, overall ETF money has been leaving the market for weeks.
Therefore, some see the $60,000 and $70,000 range as a strong base for a rebound, while others, like Willy Woo, warn that rising volatility suggests the downtrend is strengthening and the true bottom may not be in yet.
At the same time, capital is starting to shift, with Barry Silbert of Digital Currency Group predicting that 5% to 10% of Bitcoin funds could move into privacy-focused coins as blockchain tracking reduces anonymity.
This shows that Bitcoin is now facing more than just a price correction; it is also facing questions about its role in a changing market.
In conclusion, if $60,000 holds, a recovery in 2026 is possible, but if volatility keeps rising, the market may still see further declines.
Final Summary
- Bitcoin’s network continues to adapt, with mining difficulty adjusting to protect miners and maintain stability.
- Institutional investors may be cautious, but they are not abandoning Bitcoin entirely.
Source: https://ambcrypto.com/bitcoin-fights-to-stay-above-60k-but-why-this-could-just-be-btcs-reset/
