Bitcoin fell below the $66,000 threshold on Thursday, February 19, 2026, as a confluence of macroeconomic pressures and shifting investor sentiment triggered a risk-off move in crypto markets. The decline followed the release of mixed U.S. economic data and was exacerbated by significant outflows from spot Bitcoin ETFs and escalating geopolitical tensions.
The U.S. Labor Department reported initial jobless claims of 206,000 for the week, beating market expectations of 225,000 and down from a revised 229,000 the prior week. The four-week moving average also edged lower to 219,000. However, continuing claims rose by 17,000 to 1.869 million, slightly above forecasts. Analysts from Truflation noted this data "support[s] the thesis of a softer, yet stable, labor market with limited hiring but no dramatic job losses."
Simultaneously, the U.S. trade deficit surged unexpectedly to $70.3 billion in January, far exceeding the $55.5 billion forecast and the prior $53.0 billion figure. This widening deficit, signaling growing external imbalances, added a layer of uncertainty for investors. The juxtaposition of resilient labor data, a blowout trade gap, and persistently low inflation (below 1% since early February according to Truflation) created a delicate and tense macroeconomic backdrop.
Market reaction was swift and negative. Bitcoin's price retreated to around $66,100, with traders closely watching the critical $60,000 to $62,000 support zone. A breach of this level could see prices test the next major safety net around $52,000, aligned with the 200-week moving average, with some analysts warning of a potential dip toward $50,000.
Adding to the downward pressure, U.S. spot Bitcoin ETFs recorded a substantial single-day outflow of $133 million, the largest in recent weeks. This coincided with market sentiment plunging into "extreme fear" territory. Furthermore, rising geopolitical fears in the Middle East, which pushed traditional safe havens like gold and oil higher, challenged Bitcoin's "digital gold" narrative and prompted a classic risk-off rotation.
The current environment highlights Bitcoin's sensitivity to traditional macroeconomic forces and liquidity conditions. Traders are now awaiting key upcoming economic releases, including December PCE and core PCE data and the final Q4 GDP revision, to gauge whether risk sentiment stabilizes or volatility intensifies further.
