Why is Bitcoin Crashing? (February 2026)

Bitcoin has been on a downswing for the last several months, and recently descended to a low that hasn’t been seen in almost two years. But why is this happening? Why is Bitcoin crashing?

The global economy, rumors of coming wars, and future uncertainty all contribute to Bitcoin prices, which are based on the laws of supply and demand. Read on to discover the details of why Bitcoin is crashing in February 2026.

The Global Economy

Bitcoin is interesting because it isn’t a currency tied to a single country. Rather, it is open to everyone all over the world, no matter where they live or the country they’re from. As such, its price doesn’t change based on predictable markers like more local economies.

For example, in the United States, the intent of the government to lower or increase the interest rate can be a great way to predict the strength of the US dollar. But Bitcoin isn’t tied to just one economy, meaning even if one country is doing well, if several countries are doing poorly, Bitcoin price can still decrease.

Unfortunately, the global economy is tight right now, with many countries dancing on the edge of a trade war. If that weren’t enough, there’s also the fact that many countries are currently at war with one another, further tipping the scales toward a worldwide economic decline. Plus, with AI making moves and quickly depleting world resources, many countries are just trying to stay above water.

We struggled to come up with an economy that is doing well right now, which is why we suspect this is one of the biggest effectors of the current Bitcoin crash—because the world is struggling right now, and no one has money for investing in BTC.

Rumors of Coming Wars

Not only are there many active wars currently underfoot (namely Israel vs Gaza and Ukraine vs Russia), but more and more rumors are perpetuating of coming wars. On the one hand, you’ve got Trump in the United States threatening to invade Greenland (and break up NATO as a result), and on the other, you’ve got increasing instability in the Middle East, with Afghanistan rapidly removing human rights and Iran tightening their border laws.

These factors, and more, have left many countries investing more in their own military and war resiliency, and less international trade and collaboration, even in established groups of countries, like the EU. Basically, no one is trusting anyone anymore, and instead of investing in future technologies, like Bitcoin, many of these countries have had to lower or close their positions in order to divert money to war and military preparation. And we suspect this won’t change anytime soon.

Future Uncertainty

Of course, Bitcoin has always been one of the major hedges against inflation, but with many countries questioning the future (especially whether or not the United States will continue to be a country), investors are turning back to their roots—investing heavily in metals and physical resources.

Basically, the current cryptocurrency spike was thanks to pro-crypto policies instilled by the current United States administration, and as that administration continues to crumble, other countries have begun backing off on areas where there is a large US interest, and unfortunately, cryptocurrency is one of those things.

We aren’t saying that the US is the only country with investors, but it has some of the most prolific investors, especially in the business space. And many of the countries where cryptocurrency is popular are closely tied to the US economy, meaning if the US goes down in flames, they might as well.

Trading Mentality

Unfortunately, the price of Bitcoin is also heavily controlled by the attitude of current holders and traders, meaning that any mass dip in price can quickly become a spiral of death.

Basically, there are always some Bitcoin traders who are unsure of their investment. So when prices start to decline, they begin to panic and sell off their investment. This pattern continues until all of the experimental investors leave the market—which can cause large down spikes on a price graph.

Don’t panic too much, as trader mentality doesn’t affect all traders, and some Bitcoin holders are in it for the long run—no matter what happens, meaning the spiral will eventually come to an end.

When Will the Crash End?

There is no way to accurately know when a Bitcoin crash will end, though many believe there is a solid investment floor at $38,000 and that Bitcoin is unlikely to dip below that amount.

While we believe that to be true, we also prefer to be slightly more optimistic. Bitcoin may continue to drop, but there is a lot of support around the $50,000 USD range, so even if it does descend lower, we think its dramatic drop is at least slowed…for now.

When Will Bitcoin Bounce Back?

We don’t have a crystal ball, so we can’t tell you when Bitcoin will bounce back, but many cryptocurrency publications, like the Motley Fool, believe the token will be back to $100,000 in no time at all. Their exact prediction is before the end of the year.

Again, we are somewhere in the middle, believing that Bitcoin will indeed return to its previous highs at some point, but we aren’t sure if it will happen this year. The world is sadly too on edge right now for Bitcoin to really gain the following it needs to gain to meet the next milestone. We just hope that governments around the world can learn to get along sooner rather than later, before World War III launches—but we aren’t going to hold our breath.

So, if you are a Bitcoin investor, don’t panic as this drop is simply another in Bitcoin’s varied history. That being said, we are unsure when the drop will stop and when Bitcoin will climb again, so, as always, approach any investment in cryptocurrency with caution.