The crypto market was defined by a tense “wait-and-see” dynamic as Bitcoin and Ethereum undergo a sharp technical correction amid a legislative vacuum. With the U.S. CLARITY Act stalled over stablecoin yield disputes and institutional confidence wavering due to regulatory gridlock, the market has shifted from aggressive accumulation to defensive consolidation. This fragility is further compounded by localized systemic shocks in Asia, suggesting that until a clear policy floor is established, digital assets will remain vulnerable to deeper support tests and high-volatility liquidations.
Between February 4 and 11, 2026, cryptocurrency markets remained under significant pressure as prices retraced sharply from early-month levels and regulatory clarity continued to elude investors. Bitcoin (BTC) extended its correction, briefly dipping below key support levels amid broad risk-offs and weakening sentiment. After a range sell-off early in the week, BTC fell to the high-$59,000s and is trading near $67,400–$71,000 by February 11, several percentage points below the prior week, supporting ongoing market fragility. Over this period, BTC declined by over 10%, facing heightened volatility and deeper tests of support near $60,000 before modest rebounds toward the $70,000 zone, reinforcing the narrative of a correction rather than a rebound rally.
Ethereum (ETH) followed a similar path of weakness, with prices dropping below $2,000 before recovering toward the $2,000–$2,120 range, reflecting broader capitulation dynamics and derivative liquidations across digital markets. ETH’s drawdown has been amplified by the unwinding of stronger leverage within DeFi positions and reduced institutional inflows.
Market breadth remained weak throughout the week, with major altcoins like Cardano and Solana also sliding alongside BTC and ETH. However, some assets, notably XRP, saw modest ETF net inflows of $39 million against the broader tide of outflows.
On the regulatory front, the much-anticipated U.S. Digital Asset Market Clarity Act remains stalled, with key negotiations over the treatment of stablecoin yields unresolved. A series of high-level discussions between crypto industry leaders, banking representatives, and the White House in early February produced no breakthrough and have instead highlighted the deep divisions over stablecoin policy, a core sticking point in legislative text that must be resolved before the bill can advance in the Senate.
This impasse has continued to weigh on market confidence, particularly among institutional investors who see regulatory clarity as a necessary precursor to durable inflows. Meanwhile, delays in the U.S. market structure bill, pushed to late February or March, have added to the uncertainty, delaying the definition of clear oversight roles between regulators like the U.S Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC).
Internationally, regulators are reacting to unique local incidents: South Korea’s watchdog is calling for tougher crypto rules after a promotional mishap at a major exchange highlighted systemic vulnerabilities, which could accelerate stricter frameworks in Asia.
Overall, the period from Feb. 4 to Feb. 11, 2026, saw cryptocurrencies in a strategic adjustment phase, with prices correcting from earlier highs, market breadth softening, and regulatory progress stalling. The lack of legislative progress on the CLARITY Act and broader regulatory clarity continues to act as a structural headwind, while price action suggests the market is still seeking a durable floor. Unless clear policy breakthroughs occur or institution-oriented demand returns, the near-term remains cautiously bearish and sideways, with deeper tests of support levels possible before meaningful recovery can take hold.
With respect to the current levels, Bitcoin (BTC) remains in a fragile consolidation phase, with downside risk toward the $65,000-$68,000 support zone if selling pressure persists, while any recovery is likely to face stiff resistance at $75,000–$80,000, and the major supply band between $85,000-$88,000, which must be decisively broken to confirm a bullish trend reversal; Ethereum (ETH) mirrors this structure, with near-term support around $1,900-$2,000 and potential downside to $1,750-$1,800, while resistance stands at $2,400-$2,500 and a stronger ceiling at $2,700-$3,000, making both assets technically vulnerable unless volume-driven demand returns.
In a market defined by high reactivity and misinformation that spreads rapidly, rigorous fact-checking is no longer optional; it is a survival skill. Investors should prioritize “primary source” intelligence such as official regulatory releases, verified on-chain data, and reputable financial media. Relying on viral or unverified social media claims leaves room for falling victim to distorted market expectations and emotion-driven decisions.
Overall, the period from Feb. 4 to Feb. 11, 2026, saw cryptocurrencies in a strategic adjustment phase, with prices correcting from earlier highs, market breadth softening, and regulatory progress stalling. The lack of legislative progress on the CLARITY Act and broader regulatory clarity continues to act as a structural headwind, while price action suggests the market is still seeking a durable floor. Unless clear policy breakthroughs occur or institution-oriented demand returns, the near-term remains cautiously bearish and sideways, with deeper tests of support levels possible before meaningful recovery can take hold.
With respect to the current levels, Bitcoin (BTC) remains in a fragile consolidation phase, with downside risk toward the $65,000-$68,000 support zone if selling pressure persists, while any recovery is likely to face stiff resistance at $75,000–$80,000, and the major supply band between $85,000-$88,000, which must be decisively broken to confirm a bullish trend reversal; Ethereum (ETH) mirrors this structure, with near-term support around $1,900-$2,000 and potential downside to $1,750-$1,800, while resistance stands at $2,400-$2,500 and a stronger ceiling at $2,700-$3,000, making both assets technically vulnerable unless volume-driven demand returns.
In a market defined by high reactivity and misinformation that spreads rapidly, rigorous fact-checking is no longer optional; it is a survival skill. Investors should prioritize “primary source” intelligence such as official regulatory releases, verified on-chain data, and reputable financial media. Relying on viral or unverified social media claims leaves room for falling victim to distorted market expectations and emotion-driven decisions.
By: Sandra A. Aghaizu
The market stands at a red signal,
engines running,
money in the tank.
Bills sit like unopened gates,
keys arguing over who should turn first.
Stablecoins drift in the middle…
half river, half bridge…
while investors wait for the map
to stop changing.
Until the light turns green,
capital idles,
watching the road ahead.
