New York, February 20, 2026, 06:09 EST — Premarket
- Bitcoin tacked on roughly 1.6%, trading close to $67,900 early in New York.
- On Friday, investors are watching for the Fed’s favored inflation gauge.
- Thursday brought another net outflow for U.S. spot bitcoin ETFs.
Bitcoin climbed 1.6% to $67,918 as of 6:09 a.m. EST on Friday, bouncing back after hitting a session low of $65,683. Ether slipped 0.3%, landing at $1,955.
After a rough patch for rate-sensitive sectors, the market managed a rebound. This week’s release of minutes from the Federal Reserve’s late-January meeting revealed a divided committee—some officials remain ready to consider further hikes if inflation doesn’t cool down. “Policymakers are going in opposite directions with inflation still above the Fed’s target,” said David Russell, global head of market strategy at TradeStation. (Reuters)
Eyes turn to Friday’s release of the personal consumption expenditures (PCE) price index—an inflation metric the Fed watches closely. In recent sessions, bitcoin traders have been reacting to it much as they would a major macroeconomic data point, rather than a typical crypto update. (Bureau of Economic Analysis)
Flows haven’t done any favors here. U.S.-listed spot bitcoin ETFs dropped a net $165.8 million on Thursday, with BlackRock’s fund alone making up $164.1 million of that total, according to Farside Investors data. (Farside)
Washington hasn’t stepped aside, either. According to Investors.com, the White House is attempting to broker an agreement between banks and crypto companies over a market-structure bill — with the stablecoin yield debate still front and center. That bill could determine whether stablecoins are allowed to pay interest-ish rewards on customer balances. (Investors)
After Thursday’s meeting, Coinbase Chief Legal Officer Paul Grewal wrote, “More progress today with @patrickjwitt at the WH. The dialogue was constructive and the tone cooperative. More to come.” (X (formerly Twitter))
Stuart Alderoty, Ripple’s chief legal officer, indicated progress. “We rolled up our sleeves and went through specific language today. Work will continue in the coming days,” he posted on X. (X (formerly Twitter))
Regulators chimed in with a fresh note. On Thursday, the SEC’s Trading and Markets team updated its crypto FAQ, laying out that broker-dealers dealing with “payment stablecoin” would face no pushback over a 2% haircut—a discount regulators apply when tallying capital. (SEC)
Big picture drivers remain in control. The dollar headed for its strongest weekly run since October, getting a boost from solid data and a Fed that’s leaning hawkish. Heightened U.S.-Iran tensions also had traders treading carefully before the weekend. “Markets will certainly be positioning for the risk of something happening over the weekend,” said Derek Halpenny at MUFG. (Reuters)
Still, bitcoin hasn’t managed a smooth comeback. A stronger PCE print could send Treasury yields and the dollar higher, and if ETF outflows pick up for another session, support around the mid-$60,000s faces another challenge.
First up: Friday’s PCE numbers. After that, eyes shift to the Fed’s March 17-18 policy meeting and whatever Washington signals next on crypto legislation. (federalreserve.gov)
