Bitcoin’s Resilience Tested: Navigating the First Sustained Loss Streak Since 2023

The cryptocurrency market is currently experiencing a significant test of investor resolve, as Bitcoin endures its first prolonged period of realized losses since October 2023. According to on-chain data analyzed as of early February 2026, Bitcoin has recorded a 30-day streak of net negative returns, marking a notable shift in market dynamics. Over the past week, the flagship cryptocurrency has declined by 7.11%, with its price briefly falling below the psychologically critical $90,000 threshold during Thursday's Asian trading session. This downturn has prompted a reassessment of market sentiment and capital flows, with CryptoQuant's metrics indicating a movement of capital toward traditional safe-haven assets. The current market retreat represents a crucial inflection point, challenging the bullish narrative that has dominated since late 2023. Market analysts are closely monitoring on-chain metrics, including realized profit/loss indicators and exchange flows, to gauge whether this represents a healthy correction within a longer-term bull market or the beginning of a more substantial trend reversal. The $90,000 level has emerged as a key battleground for bulls and bears, with its breach signaling potential further downside pressure. However, seasoned investors recognize that such periods of consolidation and correction are characteristic of Bitcoin's volatile lifecycle and often precede renewed upward momentum. The market's reaction to this sustained loss streak will provide valuable insights into the maturity of cryptocurrency investors and the evolving integration of digital assets within the broader global financial ecosystem. As of February 2026, the fundamental drivers of Bitcoin adoption—including institutional integration, regulatory clarity in major economies, and technological advancements in layer-2 solutions—remain largely intact, suggesting that the long-term trajectory may still be positive despite short-term headwinds.

Bitcoin Holders Endure First Sustained Loss Streak Since 2023 as Market Retreats

Bitcoin investors are facing their first prolonged period of realized losses since October 2023, with on-chain data revealing a 30-day streak of net negative returns. The flagship cryptocurrency has shed 7.11% over the past week, briefly dipping below the psychologically critical $90,000 level during Thursday's Asian trading session.

CryptoQuant's metrics show capital fleeing toward traditional SAFE havens like gold as geopolitical tensions escalate. The realized loss pattern—last seen during the 2023 market bottom—suggests newer entrants are now underwater on their positions. 'When weak hands bleed, smart money accumulates,' remarked Julio Moreno, head of research at CryptoQuant, while sharing charts showing net realized PnL turning negative.

The sell-off coincides with shrinking liquidity across major exchanges including Binance and Coinbase. Bitcoin's dominance ratio has slipped 2.3 percentage points this month as traders rotate into altcoins like ethereum (ETH) and Solana (SOL), which have shown relative resilience.

Bitcoin Market Calm As Long-Term Holder Sell-Side Activity Dries Up, Bullish Phase Returning?

Bitcoin's price retreated below $90,000 amid broader market weakness, yet investor sentiment remains resilient. Selling pressure from long-term holders—often the most steadfast participants—has plummeted to a yearly low, signaling growing conviction in future appreciation.

The Long-Term Holder Sell-side Risk Ratio, a key metric tracking this cohort's disposition, reflects dwindling distribution. Such restraint typically precedes bullish phases, as investors await higher valuations. Market Quant Frank notes this pattern mirrors historical accumulation periods before major rallies.

Strategy Shifts Capital Structure as Preferred Equity Overtakes Convertible Debt

Strategy's preferred equity holdings have surpassed convertible debt for the first time, marking a pivotal shift in its capital allocation. The $8.36 billion in preferred equity now outweighs $8.214 billion in outstanding convertible debt, according to its latest credit report. This structural adjustment grants greater flexibility to navigate bitcoin market cycles without the constraints of debt maturity.

The move follows a $2 billion Bitcoin purchase—its largest in seven months—and coincides with increased trading volumes for preferred shares, particularly STRC. These shares have stabilized in the $99-$101 range since January, buoyed by sustained demand. Strategy has supplemented its reserves through common stock sales, redirecting proceeds toward weekly BTC acquisitions.

Analysts interpret the preference for equity over debt as a strategic hedge against crypto volatility. The structure allows seamless conversion opportunities while avoiding forced liquidations during market downturns. STRC preferred shares now dominate trading activity, reflecting institutional comfort with hybrid instruments in digital asset portfolios.

Davos Clash: Coinbase CEO Armstrong Elevates Bitcoin in Central Bank Debate

The World Economic Forum witnessed an unprecedented confrontation as Coinbase CEO Brian Armstrong challenged traditional monetary dogma. During a session where attendees expected President Trump's trade remarks, Armstrong instead locked horns with Banque de France Governor François Villeroy de Galhau over monetary sovereignty.

"I trust independent central banks with democratic mandates more than private Bitcoin issuers," declared Villeroy de Galhau, echoing institutional skepticism toward decentralized assets. Armstrong countered with cryptographic precision: "Bitcoin's protocol requires no issuer—it achieves true independence through mathematics, not politics."

The exchange marked a turning point for cryptocurrency discourse at Davos. Where past forums relegated blockchain to technical sidebars, this year featured Bitcoin as the mainstage protagonist in global policy debates.

Wall Street Retreats from Bitcoin Arbitrage as Yields Collapse

The once-lucrative Bitcoin arbitrage trade has lost its shine for Wall Street institutions. Returns have plummeted to multi-year lows, with annualized yields now barely scraping 5%—down from 17% a year ago. The strategy, which thrived on price discrepancies between spot and futures markets, has been crushed by tighter spreads and dwindling institutional interest.

CME’s Bitcoin futures open interest has halved from its $21 billion peak to under $10 billion, while Binance maintains steadier volumes near $11 billion. Greg Magadini of Amberdata notes the trade now barely covers costs, making it unattractive compared to risk-free Treasury yields.

The decline reflects a broader cooling of institutional crypto enthusiasm post-ETF approvals. As hedge funds exit, the market recalibrates—leaving retail traders and offshore exchanges to pick up the slack.

Bitcoin Faces Near-Term Pain but Long-Term Promise, Says Tom Lee

Fundstrat's Tom Lee warns investors of a turbulent start to 2026, with political friction and tariff tensions potentially dragging down both equities and Bitcoin. A mid-teens correction—15% to 20%—could materialize before conditions stabilize. Geopolitical risks and partisan divides may delay a broad market rally, though dovish Fed policy and the end of quantitative tightening could fuel a late-year rebound.

Crypto liquidity remains strained from recent deleveraging, but blockchain and AI are underscored as structural tailwinds. The WHITE House's sector-specific interventions may unevenly shape the recovery landscape. "2026 mirrors 2025's script," Lee notes, "good fundamentals clashing with tariffs and political noise, while technology leads the eventual charge."