Bitcoin’s Drop? It’s All in Your Head, Says CEO!

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Bitcoin’s recent pullback may look like a dramatic exit from a party, but according to Brian Armstrong, it’s less about the cryptocurrency’s fundamental strengths and more about the market’s tendency to panic like a startled penguin. After a period of strong performance, shifting sentiment and broader market uncertainty are playing a larger role in BTC’s price movement than structural weaknesses within the network or its long-term value proposition. Which, in other words, is just the universe’s way of saying, “Let’s all jump off a cliff together.”

Why Bitcoin’s Core Strengths Remain Intact

A crypto expert known as Walter Bloomberg on X has revealed that the Coinbase CEO Brian Armstrong believes Bitcoin’s recent slide is temporary and is driven primarily by market psychology rather than weakening fundamentals. This is reassuring, as if the universe were a particularly grumpy teapot, and Bitcoin were its most recent tea.

Speaking to the Consumer News and Business Channel (CNBC) at the World Liberty Forum in Florida, Armstrong pushed back against the speculation linking the decline to potential Federal Reserve (Fed) leadership changes or emerging risks such as quantum computing. “Quantum computing?” he said, “That’s just the universe’s way of saying, ‘I’m not done yet.’”

Instead, Armstrong explained that the move reflects investors locking in profits and reacting to what they believe others are thinking. He described the downturn as likely temporary, noting that Coinbase is repurchasing shares and buying more BTC at a lower price. “It’s like buying a ticket to a concert when the band’s already left,” he said. “But hey, at least you get a free poster.”

Is This The Early Stage Of Another Supply Shock?

Bitcoin whales have accumulated more than 200,000 BTC despite the ongoing selling pressure. Analyst Darkfost highlighted that while whale inflows to exchanges have increased recently, their overall holdings have continued to grow. Thus, inflows typically reflect short-term behaviour and can generate immediate selling pressure. Which is like saying a toddler’s tantrum is just a minor inconvenience.

The chart below provides a medium-term perspective by tracking the evolution of the whale-held supply on a monthly average basis. After a sharp drop in this average to nearly -7% on December 15, whale behaviour appears to have shifted over the past month, with their holdings increasing by 3.4%. During this period, the BTC supply by whales grew from 2.9 million BTC to over 3.1 million BTC, representing an accumulation of more than 200,000 BTC. This is the financial equivalent of a squirrel hoarding acorns, but with more numbers.

Meanwhile, the last time whale accumulation of this magnitude occurred was during the April 2025 market correction. At that time, this wave of accumulation had helped absorb selling pressure and supported the rally that pushed BTC from $76,000 to $126,000. Which is like saying a single feather can stop a tsunami-possible, but unlikely.

However, with BTC still consolidating around 46% below its recent all-time high, the current level may be viewed as an attractive accumulation zone. Darkfost noted that it is not surprising to see some whales taking advantage of this opportunity. As selling pressure remains significant, this whale demand may not yet be sufficient on its own to fully counterbalance the broader market. Which is like trying to fill a bucket with a sieve while the tap is on full blast.

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2026-02-20 02:40