It seems like the sky is falling again, doesn’t it? If you’ve looked at the charts lately, you’ve seen the price of Bitcoin fall aggressively in 2026, testing the nerves of even the most seasoned veterans. We are currently looking at a decline towards the $60,000 range, a far cry from the euphoria of the $100,000 highs we experienced not too long ago.
But according to industry experts, this is not a catastrophic crash; It’s a stress test. Anthony Pompliano, founder of Professional Capital Management, recently described this decline not as a sudden heart attack, but as “death by a thousand cuts.” It sounds painful, but for those employing a long-term strategy, this might just be the most important buying opportunity of 2026.
It is important for bitcoin investors to understand the macro environment now.
Wall Street is here, so you have to pay attention to what they think and do. pic.twitter.com/OJJhoX479l
—Anthony Pompliano
(@APompliano) February 13, 2026
(@APompliano) Why this Bitcoin price volatility matters to investors
So why is the market bleeding? Speaking on CNBC, Pompliano emphasized that there is no single villain in this story. Rather, it is a mixture of four smaller factors. First, we have natural profit taking after Bitcoin finally breaks the psychological barrier of $100,000 in a typical cyclical manner. Second, investors now have “more at their disposal” with the rise in AI stocks stealing some of crypto’s spotlight alongside explosive new all-time highs for gold.
Above all, the story changes. While many of us bought Bitcoin as an inflation hedge (protection against the loss of value of the dollar), Pompliano argues that deflation is now the biggest economic risk. This change is causing short-term confusion in the market.
However, he notes that Bitcoin’s volatility decreases as the asset matures. He calls this an “80 volt active turning into a 40 volt active.” Basically, price fluctuations diminish over time, although they still feel like a roller coaster to us.
However, at present, crypto market sentiment has hit rock bottom. We see that fear and greed for cryptocurrencies are at a 6-year low, suggesting that panic is the dominant emotion at the moment.
Cryptocurrency Fear and Greed Chart
1 year
1m
1w
24h
DISCOVER: 16+ New and Coming Binance Announcements in 2026
What the Data Really Shows About Bitcoin Price Drop in 2026
These figures support the “death by a thousand cuts” theory. We do not see a structural failure of the Bitcoin network; we see market mechanisms at work. The introduction of ETFs has “financialized” Bitcoin, meaning it now trades more like a traditional asset and less like the Wild West currency it once was.
This recent decline is largely an affirmation of “deleveraging without capitulation,” according to VanEck. Explained in simple English? Traders who use borrowed money (leverage) are eliminated, but those who believe in the long term do not sell.
(Source – Crypto Liquidations, CoinGlass)
Coinglass data shows billions in liquidations, contributing to panic selling that has accelerated in recent weeks. However, Pompliano points out that compared to previous bear markets, this cycle saw the smallest declines from the peak. The ground is rising, even if today you feel like it is collapsing beneath your feet.
DISCOVER: Top 20 cryptocurrencies to buy in 2026
Is “Extreme Fear” Really a Buy Signal for Bitcoin Price?
For beginners, this is the hardest part: doing the opposite of what your instinct tells you. When everyone is terrified, the contrarian solution is to look for opportunities. This is where the HODL (Holding On for Dear Life) strategy is truly tested.
Historically, buying Bitcoin when the Fear & Greed Index is in “Extreme Fear” (below 20) has often led to significant returns a year later. This is why leading analysts always maintain high targets. For example, we still see forecasting models like Bernstein’s Bitcoin Price Target of $150,000 at stake despite the current gloom.
In fact, while retail investors are panic selling, on-chain data suggests institutions are buying the dip via ETFs. As Kraken’s Market Outlook highlights, volatility is the price you pay for performance.
What to watch next: Keep an eye on the $60,000 level and interest rate announcements from the Fed. The market is fearful, but that’s exactly when savvy investors start paying attention.
DISCOVER: How to Buy Bitcoin for Beginners
Follow 99Bitcoins on X (Twitter) and YouTube for daily updates.
The article Bitcoin’s Death by a Thousand Cuts: Why Current Volatility is the HODLer’s Ultimate Test appeared first on 99Bitcoins.
