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Bitcoin Plunges Below $66,000 Amid Institutional Selling

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  Published in Stocks and Investing on Monday, February 23rd 2026 at 12:24 GMT by CoinTelegraph
      Locales: EL SALVADOR, UNITED STATES

February 23rd, 2026 - Bitcoin (BTC) experienced a significant price correction today, falling below the $66,000 mark as selling pressure from institutional Bitcoin treasuries continues to mount. As of 17:23 UTC, BTC traded at $65,931, representing a more than 6% decline over the past 24 hours. This downturn is impacting the wider cryptocurrency market, with major altcoins like Ether (ETH), Solana (SOL), and XRP also suffering considerable losses.

While the launch of spot Bitcoin Exchange-Traded Funds (ETFs) initially ignited a bullish run, pushing Bitcoin to over $73,000 last week, recent market dynamics suggest a shift in sentiment. The optimism fueled by ETF approvals is now being counterbalanced by a combination of factors, including institutional profit-taking, macroeconomic uncertainties, and a perceived lack of sustained retail investor demand.

Treasury Sales: A Growing Concern?

Bloomberg's senior market strategist, Mike McGlone, highlights the ongoing sales from Bitcoin treasury holdings as a key driver of the current downward pressure. These treasuries, typically held by publicly traded companies or investment firms, accumulated Bitcoin as a long-term investment strategy. The decision to liquidate portions of these holdings suggests that some institutions are capitalizing on recent gains, a natural market cycle after a period of substantial appreciation.

However, the scale of these sales is attracting attention. While profit-taking isn't inherently negative, sustained and significant offloading of BTC by institutions can contribute to increased market volatility and potentially signal a broader shift in confidence. Experts are carefully monitoring the volume and frequency of these treasury sales to determine if it represents a temporary correction or the beginning of a more prolonged bear market.

Macroeconomic Headwinds Amplify the Downturn

The situation is further complicated by macroeconomic factors. A recent U.S. jobs report underperformed expectations, raising concerns about the strength of the American economy. Simultaneously, persistent inflation worries continue to loom large, prompting investors to reassess risk assets, including cryptocurrencies. The Federal Reserve's anticipated monetary policy - particularly the timing and extent of potential interest rate cuts - is heavily influencing investor behavior. Higher interest rates generally make riskier assets less attractive, diverting capital towards safer investments like bonds.

The ETF Impact: Short-Term Enthusiasm vs. Long-Term Adoption

The approval of spot Bitcoin ETFs was widely hailed as a watershed moment for Bitcoin, opening the doors to mainstream adoption and increased institutional investment. These ETFs allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency itself, simplifying the investment process. Initial inflows into these ETFs were substantial, contributing to the price surge.

However, the initial surge in ETF-driven demand appears to have cooled. While inflows remain positive overall, they have slowed considerably in the past week, suggesting that the low-hanging fruit of new investment has already been harvested. The real test for ETFs will be sustained demand over the long term, demonstrating that they are attracting a new wave of investors beyond the existing crypto community.

Volatility and the Future Outlook

Analysts anticipate continued volatility in the short term. The interplay between institutional selling, macroeconomic conditions, and ETF performance will likely dictate Bitcoin's price trajectory. While some predict a further decline towards key support levels, others maintain a long-term bullish outlook, citing Bitcoin's scarcity, increasing adoption, and potential as a hedge against inflation.

Looking ahead, investors will be closely watching several key indicators: the ongoing volume of Bitcoin treasury sales, the next U.S. inflation report, and the Federal Reserve's policy decisions. The performance of spot Bitcoin ETFs and the broader macroeconomic environment will also be crucial in determining the future direction of the cryptocurrency market. The current dip, while concerning, could also present an opportunity for long-term investors to accumulate Bitcoin at a more attractive price point, but carries considerable risk given the uncertain global economic landscape.