Bitcoin Closes February Below $67,000 Amid Geopolitical Tension and Macro Headwinds

Stay up to date with our monthly market commentary:

• The conflict in the Middle East and the announcement of new potential U.S. tariffs have pushed Bitcoin below $67,000 in February.
• Citibank and Morgan Stanley announce plans to launch Bitcoin and crypto services in 2026. 
• Bitcoin (BTC) closed the month down ~14%, while Ether (ETH) is down ~21% versus last month.*

Market Overview - February 

The price of Bitcoin (BTC) dropped by ~14% in February, closing at approximately $66,000*. 

While the month opened with a degree of stability, especially after the sharp price drop in January, the Bitcoin market entered a volatile sell-off phase driven by escalating geopolitical tensions in the Middle East. 

As frictions between the U.S. and Iran intensified, Bitcoin investors seemed to prioritize immediate liquidity over long-term holding. In early February, Bitcoin fell from the high-$70,000s to roughly $60,000 intraday before stabilizing in the mid-$60,000s later in the month.

Adding to the geopolitical uncertainty that dominated the early part of the month, the market experienced sustained structural pressure. A significant factor was the U.S. spot Bitcoin ETFs, which, after a period of consistent institutional backing, saw approximately $3.8 billion in outflows during a five-week redemption streak from January into February.

This institutional retreat coincided with a massive deleveraging event in the broader crypto market, during which reportedly between $3 and $4 billion was liquidated, with an estimated $2 to $2.5 billion concentrated in Bitcoin futures. 

Investors' uncertainty over potential new trade tariffs added downward pressure on the broader macro environment, which prompted investors to rotate into cash or Treasuries.

As the military conflict in the Middle East unfolded, Bitcoin dropped below $64,000 at month-end before regaining its footing to trade above $66,000 at month-end. 

Crypto Asset Market Performance Review 

Growing geopolitical tensions that resulted in conflict in the Middle East combined with macroeconomic strains dragged the crypto asset market a leg lower in February, resulting in a monthly close in the red. 

Notably, several leading crypto assets dropped by more than 20% month-on-month.

Bitcoin (BTC) finished the month down around 14% from its January close, while Ether (ETH) dropped by over 21%. The largest crypto asset by market capitalization is on track for its worst first quarter since 2018, while ETH is having a worse Q1 than in 2025 so far. 

Several other large-cap crypto assets saw even larger corrections. Ripple (XRP) and Solana (SOL) ended the month in the deep red, with declines of ~22% and ~23%, respectively. Dogecoin (DOGE) also finished the month lower, but with less decline of ~10%. 

Two large-cap crypto assets that decreased the least in price this month were Tron (TRX) and the Leo Token (LEO), dropping by only ~1.5% and ~4%, respectively. 

Institutional Interest in Bitcoin

While Bitcoin was trading lower in February, there were still some exciting updates in the institutional space, with Citibank and Morgan Stanley announcing plans for adding Bitcoin services this year. 

Citibank and Morgan Stanley Plan Bitcoin Services for 2026

Over the past 24 months, Bitcoin adoption among banks and financial institutions has been steadily on the rise. From new funds launched to Bitcoin-backed financial products, or even spot trading products. 

This month, we can add Citibank and Morgan Stanley to the group of institutions that announced new products. At February’s Bitcoin for Corporations event, Citi's Nisha Surendran took to the stage to announce plans for Bitcoin services later this year.

The bank is planning to launch new infrastructure in late 2026 to offer institutional clients access to Bitcoin. This will include institutional-grade custody, wallet management, and 24/7 settlement. This technology is designed to integrate fully with the bank's existing systems. 

According to Surendran, the core principle behind the products is to make Bitcoin “bankable” and offer customers a simple integration into an emerging market. Next to Citibank, Morgan Stanley also announced new products. 

Amy Oldenburg of Morgan Stanley confirmed plans to launch a native custody-and-exchange platform. The initial offering will be Bitcoin trading on E*Trade, a subsidiary of Morgan Stanley. This platform, part of the firm's wealth management services, will subsequently expand to include lending and yield products starting next year. 

‍*Closing price data is from February 27th 2026, at 18:15 CET

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