The digital asset market continued to experience heightened volatility in February 2026, influenced by macroeconomic uncertainty and escalating geopolitical tensions. Bitcoin traded primarily within the US$60,000–US$70,000 range during the month. It opened the month at approximately US$78,500 (A$113,000), reached a low near US$62,500 on February 6th, and closed the month at approximatelyUS$68,000 (A$95,400). Bitcoin demonstrated resilience over the weekend of 28 February – 1 March 2026, rebounding strongly following an initial decline triggered by military strikes on Iran by U.S. and Israeli forces. The escalation in geopolitical tensions has introduced additional uncertainty for global markets, while continued tariff uncertainty has further contributed to market volatility and subdued investor sentiment.
Regulatory developments continued to evolve across key global jurisdictions. In Hong Kong, Financial Secretary Paul Chan announced that the jurisdiction is expected to issue its first stablecoin issuer licences as early as next month. Furthermore, additional legislation covering crypto asset dealers and custodians is anticipated later in 2026. In the U.S., SEC Chairman Paul Atkins has indicated a renewed focus on advancing digital asset regulatory frameworks, describing the previous administration’s approach as a “missed opportunity.” Atkins specifically highlighted the potential of distributed ledger technology, particularly in relation to payment clearing and settlement infrastructure. He also noted that the SEC has already approved tokenised money market mutual funds, with tokenised bank deposits potentially representing the next stage of development.
Despite a price correction during the month, institutional adoption continued to strengthen. Institutional ownership of spot BTC ETFs was estimated at approximately 29% by the end of 2025, representing a five-percentage-point increase since Q1 2025, according to the latest 13F filings. Morgan Stanley is reportedly pursuing a national trust bank charter to support digital asset custody, staking, and trading services. Meanwhile, Barclays is exploring blockchain-based settlement infrastructure in anticipation of significant growth in the stablecoin market, which some estimates suggest could reach trillion-dollar scale. In derivatives markets, CME Group announced plans to offer cryptocurrency futures and options on its CME Globex platform on a 24/7 basis, beginning 29 May, 2026, subject to regulatory approval.
The digital asset treasury (DAT) sector experienced more challenging conditions amid Bitcoin price volatility and weaker earning reports from several participants. Strategy (formerly MicroStrategy) purchased an additional 4,220 BTC during February, increasing its total holdings to 717,722 BTC. While the company reported a significant operating loss of approximately $17.4 billion for Q4 2025, this was largely attributable to non-cash unrealised losses associated with its Bitcoin holdings. In Asia, Japan-based Metaplanet reported a net loss of US$619 million for the fiscal year ended 31 December 2025, driven by a US$665.8 million valuation loss on its Bitcoin assets. However, the company continued to demonstrate strong underlying operational growth, with operating profit increasing 1,695% year-over-year to 6.29 billion yen (approximately US$41 million). CEO Simon Gerovich noted that the unrealised valuation loss is not considered material, as the company maintains a long-term Bitcoin accumulation strategy.
Government-level interest in Bitcoin exposure continued to expand in February. Notably, Abu Dhabi sovereign wealth funds, ADIA and Mubadala, increased their exposure to Blackrock’s IBIT ETF added nearly four million shares between October and December, bringing its total holdings to 12.7 million shares. The move came as bitcoin fell roughly 23% during the quarterBetween October and December, the Abu Dhabi sovereign wealth funds, ADIA and Mubadala, significantly increased their stake in Blackrock’s IBIT ETF by adding nearly four million shares, bringing their total holdings to 12.7 million shares. This increased exposure occurred during a quarter where bitcoin’s price dropped by approximately 23%. It highlights the continued trend of sovereign wealth funds gaining exposure to Bitcoin through regulated investment vehicles.
Despite price volatility observed throughout February, the fundamental drivers supporting Bitcoin remain intact. Institutional adoption, continued development of financial market infrastructure and increasing regulatory engagement continue to support Bitcoin’s growing role within the global financial system.
