Quick Read
- Bitcoin’s price plunged 5% to approximately $64,700 on Monday, February 23, 2026.
- Large holders (‘whales’) dominate selling, contributing nearly two-thirds of Bitcoin flowing to exchanges.
- Short-term investors are still selling at a loss, though panic selling has cooled.
- Institutional investors like Mubadala, Al Warda, and Strategy continue to accumulate Bitcoin exposure.
- Market indicators suggest a ‘base-building phase’ with thinning liquidity and rising altcoin volatility.
WORLD (Azat TV) – Bitcoin’s price experienced a sharp decline, falling to approximately $64,700 in early trading on Monday, February 23, 2026, a 5% drop within 24 hours. The plunge, which largely occurred on Sunday evening, was driven by increased selling pressure from large institutional holders, commonly known as ‘whales,’ and continued losses realized by short-term investors. This latest market movement underscores the cryptocurrency’s inherent volatility and signals a critical ‘base-building phase’ for investors, even as major institutions continue to accumulate Bitcoin exposure.
The world’s largest cryptocurrency had been trading near the $67,000 range over the weekend before its rapid descent. Data from on-chain analytics firms Glassnode and CryptoQuant indicates a complex market dynamic where panic selling by recent buyers is cooling, yet the broader market structure remains under pressure.
Bitcoin Price Plunges Amid Whale Selling
The recent price drop saw Bitcoin tumble below the crucial $65,000 mark. According to CryptoQuant’s exchange metrics, a significant shift in selling patterns is evident. The ‘exchange whale ratio’ has climbed to 0.64, its highest level since 2015, meaning nearly two-thirds of the Bitcoin flowing onto exchanges originates from the 10 largest daily deposits. This reinforces the notion that larger players, rather than small retail traders, are predominantly driving current exchange activity and contributing to the downward price pressure.
Simultaneously, short-term investors have been selling at a loss. Glassnode data revealed that while the smoothed 7-day measure of short-term holder profits and losses had fallen to –$1.24 billion per day on February 6, it has since moderated to about –$0.48 billion per day. This suggests that while the intensity of panic selling has somewhat eased, recent buyers are still collectively selling at a loss, a characteristic typically associated with bottom-building phases rather than strong uptrends.
Market Indicators Signal Fragile Recovery
Despite the cooling of immediate selling, the overall market environment remains fragile. CryptoQuant data shows that the amount of Bitcoin sent to exchanges, which surged to about 60,000 BTC per day during early February’s drop toward $60,000, has now fallen to roughly 23,000 BTC on a 7-day smoothed basis. This indicates a reduced immediate selling wave, yet other indicators point to weaker buying power.
Liquidity buffers are thinning, with net USDT inflows to exchanges compressing sharply from a one-year high of $616 million in November to just $27 million, even briefly turning negative in late January. Stablecoin inflows typically expand during rallies, so their contraction suggests reduced marginal buying power. Furthermore, average daily altcoin exchange deposits have risen to approximately 49,000 so far in 2026, up from about 40,000 in Q4 2025, a trend historically linked with higher volatility and weaker risk appetite across the broader crypto market.
Institutional Investors Continue Accumulation
In contrast to the prevailing selling pressure from some large holders and short-term investors, several prominent institutions are actively increasing their exposure to Bitcoin. Abu Dhabi’s Mubadala Investment Company, for instance, significantly increased its stake in BlackRock’s iShares Bitcoin Trust (IBIT) to 12.7 million shares, valued at about $630 million as of December 31, 2025. This represents a 46% increase from the prior quarter, as reported by Bitcoin Magazine.
Similarly, Al Warda Investments also raised its IBIT holdings to 8.22 million shares. Together, these two Abu Dhabi funds held over 20 million IBIT shares worth more than $1.1 billion at the close of 2025. Adding to this institutional confidence, Strategy purchased another 2,486 BTC for $168.4 million last week, bringing its total holdings to 717,131 BTC. Strategy executive Michael Saylor hinted on social media platform X that the company might make its 100th Bitcoin purchase this week, extending a 13-week accumulation streak despite facing a $5.8 billion unrealized loss on its holdings.
The Outlook for Bitcoin’s Volatility
As the week unfolds, the critical question for the market is whether the $65,000 level can hold as a near-term support point or if Bitcoin will remain in a prolonged base-building phase. The confluence of dominant whale selling, continued, albeit slowing, loss realization by short-term holders, and thinning liquidity suggests a market still undergoing a significant recalibration. However, the sustained accumulation by major institutional players provides a counter-narrative, indicating long-term confidence in Bitcoin’s value despite its current volatility.
The ongoing divergence between short-term market pressures and persistent institutional investment highlights Bitcoin’s evolving role, where immediate price fluctuations are being weathered by entities focusing on its long-term strategic value.