BTC Stuck Below $70,000, Japan’s Inflation Slides Under 2 % – February in Charts
February 2026
Bitcoin finished the month unable to break the psychological $70,000 barrier, while Japan reported its first sub‑2 % inflation reading in three years. At the same time, a wave of regulatory adjustments in Europe and Asia, a rebound in crypto‑ATM deployments, and a series of tariffs in the United States have added new layers of complexity to the crypto landscape. Below is a data‑driven roundup of the most consequential developments that shaped February’s markets.
1. Bitcoin’s Price Stagnates Under $70K
- Closing price: BTC hovered around $68,500 at month‑end, failing to sustain any decisive push above $70,000.
- Volume & volatility: Trading volumes on major exchanges remained modestly elevated, yet price swings narrowed, suggesting a consolidation phase.
Why the ceiling held
- U.S. tariff policy: Following a Supreme Court ruling that nullified a Trump‑administered trade sanction, the former president announced a fresh 10 % global tariff increase via the Trade Act of 1974. Analysts link the heightened trade friction to a “risk‑off” bias that depresses high‑volatility assets, Bitcoin included.
- Legislative gridlock: The CLARITY Act—intended to create a unified regulatory framework for digital assets—has stalled in the Senate. The lack of clarity on reporting, consumer protection, and potential bail‑out mechanisms appears to be dampening institutional appetite.
- Cross‑asset correlation: Research from XWIN on the Japanese market shows Bitcoin’s price tends to move in tandem with U.S. equities. With the Nasdaq and S&P 500 experiencing modest pullbacks amid tariff uncertainty, Bitcoin mirrored the trend.
2. Japan’s Inflation Dip Below 2 %
- Headline figure: Consumer price growth slowed to 1.8 % in February, the lowest reading since 2023.
- Policy backdrop: Prime Minister Sanae Takaichi called a snap election in early February. The Liberal Democratic Party (LDP) secured a two‑thirds majority in the lower house, reinforcing its mandate to pursue a more disciplined monetary stance.
Market reaction
- Equities: The Nikkei‑225 surged roughly 10 % over the month, rallying sharply after the election outcome was confirmed on February 9.
- Bond yields: Japanese Government Bond (JGB) yields edged lower, reflecting increased demand for safe‑haven assets amid the inflation slowdown.
- Crypto implication: A stronger yen and a more attractive bond market could divert capital away from risk assets, including Bitcoin. Historical data points to a modest negative correlation between yen‑strengthened environments and BTC price movements.
3. Global Crypto‑Tax Reform Activity
Four jurisdictions announced notable shifts in how they treat digital assets in February:
| Country | Proposed Change | Status |
|---|---|---|
| Netherlands | Introduction of a 36 % capital‑gains tax on unrealized gains for savings and liquid assets, covering crypto. | Draft law under review; cabinet signaled willingness to amend after criticism. |
| Israel | Lobbying effort to relax rules on stablecoins and tokenization, and to simplify compliance for crypto firms. | Public support appears strong; legislative timeline unclear. |
| Hong Kong | Adjustment of the Inland Revenue Ordinance to adopt the OECD’s Crypto‑Asset Reporting Framework (CARF). | Implementation pending; aims to align with global tax‑exchange standards. |
| Vietnam | Draft policy for a 0.1 % personal‑income‑tax on crypto‑transaction value when processed through licensed providers; exemption from standard VAT. | Consultation phase; expected to take effect if approved. |
Other notable tax environments:
- India continues to levy a flat 30 % tax on crypto gains without loss offsets. Despite lobbying, the 2026 Union Budget left the regime unchanged.
- United States saw an uptick in crypto‑ATM installations, reaching almost 40,000 worldwide—the highest level since 2021—while regulators press operators for stricter identity‑verification protocols.
4. Crypto‑ATM Landscape Revives
- Installations: Global crypto‑ATM count grew by 290 units in February, restoring the total to just under 40,000. The growth follows a sharp decline after the 2022 market crash.
- Regulatory response: In the United States, the leading operator, Bitcoin Depot, began rolling out mandatory ID verification for its terminals, a move aimed at satisfying tightening anti‑money‑laundering (AML) expectations.
The resurgence indicates renewed retail interest in on‑ramp solutions, but also underscores the ongoing tension between accessibility and compliance.
5. Analyst Takeaways
| Issue | Potential Impact on Crypto Markets |
|---|---|
| U.S. tariff escalation | Higher trade barriers increase macro‑risk, likely suppressing demand for speculative assets such as Bitcoin. |
| Stalled CLARITY Act | Continued regulatory ambiguity may deter institutional entry, keeping price ceilings low. |
| Japan’s low inflation & strong yen | May attract capital to domestic bonds and equities, creating short‑term headwinds for BTC. |
| European tax proposals | A 36 % unrealized‑gains tax could push crypto investors toward jurisdictions with lighter treatment, influencing capital flows. |
| CARF adoption (HK) | Greater transparency could improve tax compliance but may also raise operational costs for exchanges, affecting margins. |
| Crypto‑ATM expansion | Enhanced retail on‑ramps boost adoption; however, stricter KYC requirements could limit the appeal for privacy‑focused users. |
6. Looking Ahead
- Regulatory clarity: The next few weeks will be crucial for the CLARITY Act as Senate hearings intensify. A breakthrough could reignite institutional participation.
- Tariff trajectory: Monitoring the enactment and market reception of the 10 % tariff increase will help gauge risk sentiment across both crypto and traditional assets.
- Japanese policy: With the LDP’s reinforced majority, further monetary easing or fiscal measures could be on the table, potentially altering the yen’s trajectory and, by extension, crypto demand in Asia.
Key Takeaways
- Bitcoin’s failure to breach $70,000 reflects a confluence of macro‑economic friction points, most notably U.S. tariff policy and regulatory uncertainty.
- Japan’s sub‑2 % inflation and political consolidation have bolstered domestic equities while adding subtle pressure on global risk assets.
- A wave of tax reforms across Europe and Asia signals a push toward greater fiscal oversight of digital assets, which could reshape cross‑border crypto flows.
- The rebound in crypto‑ATM deployments points to renewed retail enthusiasm, yet increasing compliance demands may temper growth.
Prepared for Cointelegraph readers; all figures are based on publicly available data as of February 2026.
Source: https://cointelegraph.com/news/crypto-taxes-btc-stuck-70k-month-in-charts?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
