A correction in the crypto market has prompted many professional investors to shift to liquid assets or increase cash holdings in their portfolios, according to Bloomberg.
“Bitcoin has found a new range around $60,000 and is fluctuating there without any clear directional confidence,” noted Bohan Jiang, a senior derivatives trader at FalconX.
As of this writing, the leading cryptocurrency is trading around $67,400—nearly 50% below its all-time high of approximately $126,000.
Hourly chart of BTC/USDT on Binance. Source: TradingView.
Defensive Positioning
According to surveys by Crypto Insights Group, many fund managers reduced their risk exposure in the fourth quarter.
Representatives from Sigil Fund stated they have completely liquidated their positions in Bitcoin and Ethereum for the first time, reducing their risky assets to 40% of their portfolio due to a deteriorating risk/reward ratio.
Basis trading, where funds buy Bitcoin on the spot market (or through ETFs) and sell long-term futures to profit from price differences, has particularly suffered. Following the market crash, this strategy has ceased to be profitable.
The Crypto Insights Group noted that managers are currently prioritizing capital preservation and flexibility, expanding mandates to include stocks related to the crypto industry.
“The increase in cash buffers indicates that most are waiting for clear macro signals, regulatory triggers, or a sustainable return of liquidity before re-entering riskier high-beta tokens,” analysts concluded.
Unprecedented Outflow
In just 100 days, the total value of the digital asset sector has decreased by $730.6 billion, noted CryptoQuant specialist GugaOnChain. He described this as an “unprecedented capital outflow,” accelerating the contraction of the crypto market.
100 Days in the Red
— CryptoQuant.com (@cryptoquant_com) February 20, 2026
“In just 100 days, the crypto market has erased more than $730 billion in value. What we are witnessing is an unprecedented short-term capital flight, deepening the contraction of the crypto economy.” – By @GugaOnChain pic.twitter.com/SaSUGUBBgu
Bitcoin has lost $347.9 billion in market capitalization, dropping from $1.697 trillion to $1.349 trillion (a decline of 21.62%). The top 20 cryptocurrencies, excluding the flagship and stablecoins, fell by $259.94 billion.
The most vulnerable segment, mid and small-cap altcoins, decreased by $122.75 billion, losing over 20% of their value.
“This is not just a correction—this is a classic investor exodus in a ‘flight to safety,’” emphasized GugaOnChain.
What’s Next?
Analysts at Glassnode indicated that Bitcoin has broken through the True Market Mean level, currently around $79,000. Historically, this level has served as a dividing line between phases of market growth and contraction.
After this breakout, the next structural support level became the Realized Price—approximately $54,900. In previous cycles, the corridor between these two indicators has been a zone of prolonged consolidation.
Source: Glassnode.
The situation has worsened compared to early February when the market was merely “holding the line” below $70,000. Since then, outflows from spot ETFs have become persistent, and selling pressure has intensified.
Experts noted that net flows into exchange-traded funds have turned negative again, depriving the market of a key source of demand. The CVD on major exchanges has also turned negative, indicating active selling.
Accumulation metrics have slightly improved, but the appetite among large holders remains weak. The Accumulation Trend Score index has stagnated in neutral territory (~0.4), indicating a halt in selling but not a return of confidence among whales.
Source: Glassnode.
The ratio of realized profits to losses has remained stuck in a narrow range typical of stressed market phases, Glassnode highlighted.
The derivatives market signals that the acute phase of panic has passed, but sentiment has not shifted. Implied volatility has sharply decreased, and the 25 Delta Skew has moved away from extreme values. Traders are hesitant to increase bets on a price rise.
As a reminder, CryptoQuant analyst Burak Keshmecii identified four indicators to watch for determining Bitcoin's long-term trend.