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As Bitcoin attempts to maintain its position around $67,000, options markets are signaling caution as traders actively increase their bids for downside protection in anticipation of a possible capitulation event.
By early morning UTC, BTC had risen 1% over the past 24 hours, trading close to $67,000, recovering from a concerning dip below the $66,000 mark.
The situation remains delicate. Even as price movements stabilize, the average U.S. ETF investor is facing a significant 20% unrealized loss, with a cost basis near $84,000. This vulnerability follows a severe 47% decline from the October 2025 peaks.
Key Takeaways:
- BTC stabilizes around $67K, yet options skew indicates a bearish sentiment.
- The average ETF investor is experiencing a 20% unrealized loss.
- Private credit stress (Blue Owl) introduces additional macro challenges.
While recent reports suggest that Abu Dhabi government funds acquired $1 billion in BTC and BlackRock has increased its investment in mining infrastructure, indicating ongoing institutional interest, the wider retail market remains apprehensive. Investors are concerned about the possibility of a total market collapse.
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Are We Facing Capitulation?
Jake Ostrovskis from trading firm Wintermute observes that traders are currently “paying for insurance,” purchasing puts to limit downside risk while restricting their upside potential. This cautious approach corresponds with harsh statistical realities.
The leverage washout has been significant, with Bitcoin recently reaching -2.88 standard deviations below its 200-day moving average—an anomaly not seen in a decade according to VanEck analysis.
Concerns about contagion are resurfacing. Crypto lender Blockfills has suspended withdrawals following a $75 million lending loss, reminiscent of the collapses witnessed in 2022.
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At the same time, traditional markets are showing signs of distress: private credit giant Blue Owl dropped 6% after halting redemptions. With recent Fed minutes cautioning about macro challenges, a risk-off sentiment is prevailing.
Despite the negative outlook, there is a notable divergence in equities. Bitcoin miners CleanSpark and MARA gained 6%, outperforming the tech-heavy Nasdaq 100, which fell by 0.6%.
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What Happens Next for BTC Price?
From a technical perspective, Bitcoin is vigorously defending the $66,000-$68,000 range. Should this level fail, the bearish triangle pattern indicates a potential decline toward $60,000 or even $55,000, according to CryptoQuant.
Source: TradingView
However, alternative scenarios are possible. Arthur Hayes highlights treasury liquidity as a potential lifeline for risk assets.
Moreover, long-term confidence has not dissipated; insiders close to Trump have recently confirmed a $1 million target, suggesting that whales may perceive this dip as an opportunity for generational accumulation.
JUST IN:
Eric Trump states Bitcoin will reach $1 million.
“I’ve never been more bullish on Bitcoin in my life.” pic.twitter.com/niJH5ILfh9— Watcher.Guru (@WatcherGuru) February 18, 2026
Eric Trump states Bitcoin will reach $1 million. For the time being, bulls will be hoping for a rapid return to $84k to restore confidence among ETF investors.
The post Bitcoin Holds Near $67K as Traders Pay Up for Crash Protection in Options Markets appeared first on Cryptonews.
