"The Bitcoin price slide from $126,000 in October 2025 to around $66,000 in February 2026 is one of the steepest corrections since the FTX collapse. Exchange inflows have climbed sharply as sellers move coins to trade. Long-term holder balances have dropped to multi-year lows and extreme fear has returned- bearish sentiment readings haven't been this low since 2022. Still, Bitcoin has bounced back from drops like this before."
"BTC has seen over 20 corrections exceeding 40% since 2011. Mid-cycle pullbacks of 35% to 50% have often reset overheated rallies without killing them. When there's no structural failure, Bitcoin recovery to previous highs has typically taken around 14 months. Unlike 2022, there's no systemic collapse this time. Realized price near $55,000 offers a floor where long-term holders tend to buy. Whether this becomes a months-long correction or something longer depends on macro liquidity and market sentiment."
Bitcoin declined roughly 50% from its October 2025 peak of $126,000 to about $66,000 by February 2026, triggering extreme fear and rising exchange inflows as sellers move coins to trade. Long-term holder balances have fallen to multi-year lows. Historical data shows over 20 corrections exceeding 40% since 2011; the last three drawdowns took between eight months and three years to recover depending on liquidity, policy, and structural damage. Mid-cycle pullbacks of 35–50% often reset overheated rallies without ending them. A realized price near $55,000 provides a buying floor; recovery timing hinges on macro liquidity and market sentiment.
Read at 24/7 Wall St.
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