Bitcoin’s mining difficulty declined by about 11.16% at block 935,429, marking the largest single adjustment drop since China’s crypto mining crackdown in 2021. Difficulty currently stands near 125.86 T and is projected to fall again on February 23 to around 112.7 T, alongside a hashrate pullback linked to a broad market downturn and weather-related shutdowns of U.S. miners.

On 7 February 2026, the U.S. government's Bitcoin reserve posted paper losses approaching $5 billion since its launch last year as Bitcoin fell roughly 45% from its peak, per Walter Bloomberg. The SEC chair said on CNBC that a market-structure bill is close to passage, while Vietnam's finance ministry proposed a 0.1% tax on crypto transfers.

Bitcoin has fallen back below $70,000 after a sharp move between $60,000 and $72,000 earlier in the week. Analysts highlight $65,000 as a key support area, warning that a breakdown could open the way toward the $55,700–$58,200 range as forced liquidations and negative ETF flows weigh on the market.

Analysts note that Bitcoin has fallen roughly 52% from its recent 2025 all-time high, a scale of correction they say resembles prior mid-cycle pullbacks rather than a full trend reversal. Some traders are watching a Daily Fair Value Gap above current prices as a potential target for a relief rally, while others still see downside risk toward zones such as $34,000. Volatility remains elevated, and market participants are closely tracking how price behaves in key liquidity areas before a clearer direction emerges.

Bitcoin's supply cap of 21 million contrasts with a much larger synthetic market where leveraged derivatives on venues like Binance dominate short-term price action. Recent data shows perpetual futures volumes exceeding spot by ratios above 6:1, rising exchange reserves, and choppy US spot Bitcoin ETF flows, helping explain why prices fell even as spot bids and some ETF inflows increased.

Bitcoin's mining difficulty was reduced by 11.16% to 125.86 trillion at block height 935,424, marking the biggest negative adjustment since China's 2021 mining ban and reportedly the tenth largest in the network's history. Over the past month the hashrate has fallen about 20% amid a sharp bitcoin price decline and Winter Storm Fern‑related shutdowns, pushing hashprice to fresh all-time lows and leaving many older mining rigs close to or below breakeven.

In early 2026, stablecoin dominance has climbed about 25% to roughly 14% of the crypto market, even as the TOTAL market cap has fallen around 23% and Bitcoin trades about 50% below its $126k peak. Over the same period, weekly stablecoin inflows have doubled to nearly $102 billion and Tether has added $4.75 billion in new USDT supply, suggesting investors are moving into stablecoins as a defensive position rather than exiting crypto entirely.

Bitcoin fell more than 40% over the past month to a year-to-date low of $59,930 on Friday, over 50% below its October 2025 peak near $126,200. Analysts highlight leveraged Hong Kong options trades tied to IBIT, banks’ structured-note hedging, and miner cost lines around $58,160–$72,700 as factors that could pressure price near $60,000.