It is still unclear whether Bitcoin has bottomed out. But the mixed sentiment has continued into the new week, driven by several market headlines.
Here’s a summary of the key updates shaping the market in the third week of February.
Is Bitcoin Looking at ‘Stabilization’ or More Downside Risk?
After renewed strength and a $70,000 retest over the weekend, Bitcoin [BTC] has given back some of those profits.
It fell to a low of $67.2K during the intraday trading session on February 16, barely holding the $68K level at the time of writing.
The short reset has diminished optimism around the previous market recovery, dragging broader crypto sentiment back into “extreme fear.”
According to Bitfinex However, analysts saw this as part of a broader price stabilization, citing a constructive macro landscape and derivatives market positioning.
The analysts added:
“The positioning of derivatives supports the view that the recent rebound is a stabilization phase rather than a debt-induced squeeze. Funding rates have also normalized.”
The analysts highlighted that options positioning was also somewhat neutral and that more than 18,400 BTC were withdrawn from the exchanges last week. They concluded,
“This repricing suggests that traders are no longer aggressively hedging tail risk, but they are also not aggressively re-increasing leverage.”
Bitfinex expects the price to remain between $55K and $78.2K before BTC enters a new bull run in the market.
Institutional interests vary among crypto ETPs
That said, crypto ETPs saw cumulative outflows of $173 million last week, marking their fourth week of distribution.
During the four-week period, nearly $4 billion was distributed by the crypto ETPs, led by Bitcoin and Ethereum [ETH]. In the past week alone, BTC saw a $133 million selloff, while ETH lost $85 million.
Source: CoinShares
Interestingly, XRP and Solana led institutional altcoin inflows, with $33.4 million and $31 million in new demand, respectively.
Despite the soured and “extreme fear” sentiment for BTC and ETH, select altcoins like XRP and Solana were generally boosted by institutional demand. It was unclear whether the difference in demand would persist.
Harvard Cuts Bitcoin Exposure by 21% and Pivots to ETH
Still on institutional crypto investors, Harvard Management Company reportedly It cut its position in BlackRock’s iShares Bitcoin Trust (IBIT) by 21% in the fourth quarter of 2025, according to SEC filings.
As of December 31, the company owned 5.35 million IBIT shares, which were worth $265.8 million at the time. This was a reduction of 1.48 million shares during the quarter.
Despite the sale, BTC exposure was still the record high public investment in the university’s portfolio.
Interestingly, Harvard also made its initial debut in BlackRock’s iShares Ethereum Trust (ETHA), investing $86.8 million. It was not clear whether the move was a balancing act or a hedge for Harvard.
CFTC is fighting for control of the prediction markets
CFTC Chairman Mike Selig is dissatisfied with the ongoing clash between federal and state regulations over event contracts, also known as prediction markets.
For states including Nevada, even gambling contracts such as sports betting should be subject to the same local laws.
CFTC, however maintains that these markets go beyond that and act as risk management tools that help aggregate future opportunities and hedge risks.
For the federal regulator, states’ “encroachment” would undermine the growth of these markets, with Selig adding:
“The CFTC will no longer stand idly by as overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by attempting to impose a statewide ban on these exciting products.”
The mainstream has joined Crypto.com in a lawsuit against Nevada over this, and the ruling could bring more clarity to the prediction markets.
Final summary
- Bitfinex Analysts Said BTC Price ‘Stabilized’ But Expected Long-Term Consolidation Until Positive Flows Return
- CFTC asserted that it has sole federal jurisdiction over the regulation of prediction markets, not the states.