New York, February 12, 2026, 12:11 EST — Regular session
- Bitcoin dropped to around $65,700, with traders eyeing ETF outflows and jittery over another liquidity scare.
- Data shows U.S. spot bitcoin ETFs posted net outflows of roughly $276 million on Feb. 11.
- Traders are eyeing Friday’s U.S. CPI data, while keeping watch on whether BlockFills will resume withdrawals.
Bitcoin slipped under $66,000 Thursday, dragged lower as traders reacted to new outflows from U.S. spot bitcoin funds and a freeze on withdrawals at crypto lender BlockFills. Down roughly 0.5%, bitcoin changed hands at $65,734 after moving between $68,318 and $65,612. Ether edged down 0.2% to $1,908.76.
This shift carries weight. Crypto’s tracking U.S. rates with high-beta swings once more. Traders are watching just a handful of cues: inflation data, where the money’s moving, leverage pressure. None of those signals is all that clear right now.
Spot bitcoin ETFs—funds that actually hold bitcoin and trade on exchanges like regular stocks—now serve as a daily barometer for demand from traditional investors. Quick outflows can hammer prices, especially when liquidity is already thin.
U.S. spot bitcoin ETFs bled roughly $276.3 million in net outflows Wednesday, according to Farside Investors. Redemptions were spread out across the major funds: BlackRock’s IBIT lost $73.4 million, Fidelity’s FBTC shed $92.6 million. WisdomTree’s BTCW, however, picked up a modest $6.8 million inflow. 1
BlockFills, the Chicago crypto liquidity shop, said Wednesday it froze client deposits and withdrawals last week, but clients can still trade spot and derivatives as the firm works to shore up liquidity. The Financial Times flagged the suspension first, per Reuters. According to PitchBook data Reuters cited, BlockFills pulled in $6 million from investors, including CME Ventures and Susquehanna Capital, in 2021, then landed $37 million more the following year. 2
Some traders flagged last week’s slide toward $60,000 as a possible “capitulation” low—signaling forced sellers might have finally run dry—but said there’s still no obvious spark for a bounce. “A clear catalyst for a sustained rebound remains elusive,” said IG Australia analyst Tony Sycamore. Kaiko’s Laurens Fraussen also noted that “thin order books”—essentially, scant buy and sell orders—mean bitcoin could see outsized swings even on relatively small bouts of selling. 3
Geoff Kendrick at Standard Chartered isn’t mincing words. The analyst flagged “challenging” market moves lately and sees more pain ahead. “We expect further price capitulation in the next few months,” Kendrick said. His call: bitcoin dropping to $50,000, perhaps even slipping just under. 4
Macro backdrop is doing no favors. The long-delayed January payrolls number landed Wednesday, coming in at 130,000, with unemployment ticking down to 4.3%, per Reuters. Those numbers prompted traders to scale back their hopes for rate cuts in the near future. “An extended pause still seems likely,” wrote Oren Klachkin, economist at Nationwide. Kansas City Fed President Jeffrey Schmid described the jobs headline as “good news,” according to Reuters. 5
Bitcoin doesn’t pay a yield, so the interest-rate narrative is key here. If investors expect steady returns from cash or bonds, riskier bets like bitcoin tend to slip from favor—particularly following a stretch of forced selling.
The tape turns on a dime. A cooler inflation read might ease rate jitters and send cash flowing back into crypto funds. But if the number comes in hot, another sharp drop is on the table—and if crypto lenders show more cracks, expect the swings to get even wilder.
The next big data point for traders lands Friday at 8:30 a.m. ET, when January’s U.S. consumer price index drops. Also up: fresh ETF flow figures and any word on when BlockFills plans to resume withdrawals. 6
