Geopolitics and a potential resurgence of the U.S. dollar are applying pressure to cryptocurrency markets. A sharp sell-off on February 12th saw Bitcoin and gold fall alongside traditional equities, erasing roughly $120 billion from the crypto market. Analysts point to a report suggesting Russia may shift back to using the dollar for settlements, a move that could bolster the currency and challenge risk assets like Bitcoin.
Risk assets faced a significant downturn this week, with approximately $120 billion wiped from the cryptocurrency market. The broad sell-off pushed capital out of the sector and pulled the TOTAL index back toward pre-election levels.
On February 12th, gold closed down 3.19% while Bitcoin slipped 1.2%. The S&P 500 dropped 1.57%, marking its sharpest single-day decline in nearly a month in what appeared to be a market-wide flush.
A report from Bloomberg stirred debate by pointing to Russia shifting back toward U.S. dollar usage. This potential shift could signal a return to the dollar as a settlement tool and provide the DXY with a fresh tailwind.
Bitcoin’s dip following the news suggests the market isn’t treating this as bullish, according to one observer. Technically, a stronger dollar could make bonds a more compelling high-yield alternative, weakening BTC’s appeal.
Market conviction in a Bitcoin bottom remains low, with Bitcoin ETFs logging another $276 million in outflows. Furthermore, Bitcoin’s Coinbase Premium Index has yet to flip bullish since peaking ahead of October’s previous crash.
Accumulation activity, however, remains evident from entities like Binance and Strategy (MSTR). Strategy has reportedly acquired over 42,000 BTC so far in 2026, signaling steady long-term positioning.
Structurally, Bitcoin continues to trade choppily above the $60,000 support level. The key question is whether this range will resolve into a breakout, which analysts say requires a broader sentiment shift.
This makes the Bloomberg report particularly significant, as sentiment is currently driving Bitcoin’s moves more than chart structure. A strategic partnership between two major economies could help restore investor confidence, making this development one to watch.
