Bitcoin shows signs of stabilization after a pullback, while institutional flows reveal a split narrative. Major investors like Harvard are rebalancing crypto holdings, and a regulatory battle over prediction markets is heating up.
The cryptocurrency market entered the third week of February with mixed sentiment and “extreme fear.” Bitcoin retested $70,000 over the weekend but later dropped to around $68,000. Analysts at Bitfinex called this move part of a broader price “stabilization” phase.
They pointed to normalized funding rates and neutral options positioning as supporting evidence. “Derivatives positioning supports the view that the recent bounce is a stabilisation phase rather than a leverage-driven squeeze,” the analysts stated. They expect Bitcoin to trade between $55,000 and $78,200 before a new bull run begins.
Institutional products saw $173 million in outflows last week, the fourth consecutive week of distribution. Bitcoin and Ethereum ETPs led the sell-off with $133 million and $85 million withdrawn, respectively. However, select altcoins like XRP and Solana attracted $33.4 million and $31 million in new institutional inflows.
The Harvard Management Company trimmed its position in BlackRock’s iShares Bitcoin Trust by 21% in Q4 2025. Despite the sale, its remaining $265.8 million stake was a record-high public investment for the university. Harvard also made its first investment in BlackRock’s iShares Ethereum Trust, allocating $86.8 million.
Meanwhile, the CFTC is contesting state-level attempts to regulate prediction markets, which it calls event contracts. Chair Mike Selig argues these markets are risk management tools under federal jurisdiction. “The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction,” Selig stated.
The regulator has joined Crypto.com in a lawsuit against Nevada on the issue. A ruling is expected to bring more clarity to the regulatory landscape for these markets.
