Crypto investors face record losses as mining difficulty increases in weekly review.
February 22, 2026
This week saw a series of significant developments in the cryptocurrency space, with digital asset markets experiencing a slowdown, bitcoin mining difficulty registering a substantial increase, and the Ethereum Foundation unveiling its 2026 roadmap.
Digital asset markets have been largely range-bound, with negative momentum prevailing. Bitcoin, the bellwether of the cryptocurrency world, suffered losses of around 4% over the past week and 25% over the last 30 days. Similarly, Ethereum struggled to maintain the $2,000 level, experiencing a 5.5% decline over seven days.
Analysts at Glassnode observed that the drop in bitcoin’s price to $60,000 had put psychological pressure on long-term holders, leading to significant selling at losses. This behavior shift is reminiscent of the collapse of the Terra ecosystem in May 2022, according to their data.
Inflows to trading platforms have weakened amidst the ongoing correction in the crypto markets. Professional investors have been moving towards more liquid assets or increasing their cash balances, with outflows from US spot bitcoin ETFs continuing for the fifth consecutive week.
Technical analysts identified a “bear pennant” formation on bitcoin and Ethereum charts, indicating potential price targets of $55,000 and $1,100, respectively. The bear pennant pattern typically signals a continuation of downward momentum following a sharp decline in prices.
While most of the top-10 cryptocurrencies registered losses, TRX was the exception, gaining 3%. The Crypto Fear and Greed Index remained low at 9, reflecting the prevailing market sentiment.
Bitcoin mining difficulty witnessed a significant increase of 14.73% on February 19, reaching 144.4 T. This adjustment was one of the most substantial changes since 2021. Despite hash rate rebounding after a brief dip, hash price continued to decline, dropping from $34 to $28 per PH/s per day over the week.
Amidst falling profitability, some mining operators are scaling up their operations, fueled by access to cheap power. In contrast, companies like Bitdeer have been selling their bitcoin holdings, with Bitdeer overtaking MARA Holdings in hash rate and diversifying its investments through acquisitions.
The Ethereum Foundation outlined its priorities for 2026, focusing on scaling, improving user experience, and safeguarding the base layer of the Ethereum protocol. Initiatives include increasing L1 throughput, optimizing storage, and enhancing native account abstraction and cross-chain interaction.
Additionally, concerns were raised regarding the militarization of AI, with reports suggesting that the US Army utilized Anthropic’s Claude chatbot in an operation targeting Venezuela’s president, Nicolás Maduro. Anthropic has a strict policy against using AI for violence, weapons development, or surveillance, and its partnership with Palantir Technologies is also under scrutiny following these claims.
Overall, the past week in the cryptocurrency space has been marked by market fluctuations, mining difficulty adjustments, and strategic roadmap unveilings, shaping the future trajectory of the industry.
