Bitcoin has staged a dramatic recovery, reclaiming the pivotal $66,000 level on Wednesday, February 25, 2026, defying a gravity-defying stretch of institutional selling. The flagship cryptocurrency’s resilience comes in the immediate aftermath of President Trump’s State of the Union address, where he doubled down on his promise to cement America as the "Crypto Capital of the World." Despite a brutal month that saw Bitcoin ETF outflows hemorrhage over $4.5 billion, strategic accumulation by corporate heavyweights and a shift in sentiment have sparked a relief rally that could define the trajectory for the Bitcoin price prediction 2026.
Trump State of the Union Crypto News: A "Crypto Capital" Vow
The catalyst for the current BTC $66000 rally appears to be the stabilizing effect of President Trump’s State of the Union address, delivered to a joint session of Congress last night. While the speech addressed broader themes of national unrest and economic sovereignty, Trump’s specific reaffirmation of the Strategic Bitcoin Reserve offered a lifeline to rattled investors.
Market analysts note that while the President did not announce new immediate funding for the reserve, his commitment to preventing the sale of government-held assets was enough to soothe a market gripped by "Extreme Fear." The address, which clocked in as the longest in history at nearly two hours, reinforced the administration's stance against Central Bank Digital Currencies (CBDCs), a key pillar of Trump State of the Union crypto news that resonates with the libertarian ethos of core Bitcoiners.
MicroStrategy Bitcoin Buy February 2026: Saylor Buys the Dip
While ETF investors have been fleeing, MicroStrategy has once again stepped in as the market's buyer of last resort. In a move that exemplifies high-conviction holding, the company recently disclosed a fresh MicroStrategy Bitcoin buy February 2026, acquiring approximately $168 million worth of BTC. This purchase brings their staggering total holdings to over 717,000 BTC.
Michael Saylor’s relentless accumulation strategy is being viewed as a critical firewall against the institutional capitulation seen in spot ETFs. With MicroStrategy’s average cost basis now sitting around $76,000, the firm is technically underwater, yet their continued buying signals an unwavering belief that the current cryptocurrency market news today is merely a temporary setback in a longer-term bull cycle.
ETF Bleed vs. Spot Demand: The $4.5 Billion Battle
The recovery to $66,000 is all the more impressive given the headwinds from the ETF sector. Bitcoin ETF outflows have reached a historic tipping point, with data indicating over $4.5 billion has exited these funds in the last five weeks alone. BlackRock’s IBIT and other major funds have seen consistent redemptions, driven by macroeconomic anxiety and the unwinding of the "carry trade" that dominated late 2025.
Sentiment Shifts from Despair
Just 48 hours ago, the Crypto Fear and Greed Index 11 reading signaled "Extreme Fear," a level rarely seen since the depths of the 2022 bear market. This contrarian signal often precedes sharp reversals. As selling exhaustion sets in among ETF holders, long-term on-chain metrics suggest that "diamond hand" investors are absorbing the supply, preventing a collapse below the psychological $60,000 support zone.
Bitcoin Price Prediction 2026: Is the Bottom In?
As we navigate the first quarter of 2026, the question on every trader's mind is whether this bounce is a dead cat or the start of a new leg up. The Bitcoin price prediction 2026 landscape is currently divided. Bears point to the tightening Federal Reserve policy and the lingering 50% drawdown from the October 2025 all-time highs of $126,000. However, bulls argue that the flush-out of leveraged longs and weak-hand ETF holders has reset the market structure.
If Bitcoin can sustain a daily close above $66,000 and reclaim the 200-day moving average, technical analysts project a potential run toward $72,000 by mid-March. The divergence between falling ETF balances and rising corporate treasury holdings suggests a transfer of wealth from panic sellers to conviction buyers—a classic bottoming pattern in crypto market cycles.
