Bitcoin is fighting to maintain its footing above the critical $68,000 threshold this week, marking a tense moment for the world's largest cryptocurrency as it faces its fourth consecutive week of losses. Following a staggering 50% retracement from its October 2025 record high of $126,000, market sentiment has been dealt another blow by a major institutional revelation. New regulatory filings disclose that the Harvard Management Company, which oversees the university's massive endowment, has slashed its Bitcoin exposure by 21% to fund a strategic $86.8 million entry into Ethereum ETFs. This aggressive rotation signals a potential changing of the guard in institutional crypto investment strategies.

Harvard's $87 Million Bet on Ethereum Institutional Adoption

The most significant development shaking the crypto markets this week comes from the latest 13F filings released by the Securities and Exchange Commission. Harvard University's endowment, one of the most watched institutional investors globally, has executed a decisive pivot in its digital asset portfolio. The filings reveal that Harvard offloaded approximately 1.48 million shares of its BlackRock Bitcoin ETF (IBIT) holdings, a reduction of over 20% from the previous quarter.

Capital from this sale appears to have been immediately redeployed. The endowment purchased 3.87 million shares of the iShares Ethereum Trust (ETHA), valued at roughly $86.8 million. This marks Harvard's first major disclosed allocation to Ether, validating the long-held narrative of Ethereum institutional adoption. While Bitcoin remains the endowment's largest crypto holding, this rebalancing suggests that smart money is increasingly viewing Ethereum's utility and yield potential as a necessary hedge against Bitcoin's volatility during this prolonged market correction.

Bitcoin Price Crash 2026: Analyzing the $68K Support Battle

As of February 16, 2026, Bitcoin is trading precariously near $68,600, struggling to find support after a brutal start to the year. The Bitcoin price crash 2026 narrative has dominated financial headlines, with the asset shedding nearly half its value since the euphoric highs of late 2025. Technical analysts warn that the $68,000 level is a psychological and technical line in the sand; a sustained close below this mark could trigger a cascade of liquidations targeting the low $60,000s.

The current downturn is being described by market veterans not as a chaotic collapse, but as "orderly deleveraging." Unlike the panic-induced crashes of the past, this pullback is characterized by a slow bleed of leverage from the system. However, the lack of immediate buy pressure at these levels is concerning. With Bitcoin ETF outflows totaling over $640 million in the last ten days alone, the institutional bid that propelled prices upward last year appears to be drying up temporarily.

The Role of Crypto Market Deleveraging

The concept of crypto market deleveraging is central to understanding the current price action. High-leverage long positions that were built up during the run to $126,000 are gradually being unwound. Data from derivatives markets shows a significant reset in open interest, which, while painful in the short term, typically establishes a healthier foundation for future growth. The market is effectively resetting its baseline, purging speculative excess before it can stabilize.

Institutional Sentiment Shifts: The Ether Rotation

Harvard's move is likely not an isolated event but a bellwether for a broader trend. Institutional investors are beginning to differentiate between Bitcoin as a store of value and Ethereum as a technology play. The pivot to ETH ETFs comes at a time when the Bitcoin network is facing scrutiny over diminishing returns relative to volatility. By diversifying into Ethereum, institutions like Harvard are betting on the broader utility of blockchain technology rather than just a digital gold narrative.

This rotation is further evidenced by the diverging flow data. While Bitcoin products are seeing net outflows, Ethereum investment vehicles have started to see calm but consistent inflows, suggesting that the Harvard crypto investment strategy is being mirrored by other large asset managers. If this trend accelerates, we could see a decoupling of price action between the two assets in the coming months.

Bitcoin Price Forecast February 2026

Looking ahead, the Bitcoin price forecast February 2026 remains cautious. Short-term indicators suggest that the bearish momentum is not yet exhausted. If the $68,000 support fails to hold, the next major area of interest for bulls sits around $60,000—a level that previously acted as a launchpad for rallies. Conversely, a reclamation of the $72,000 level is needed to invalidate the immediate bearish structure.

For investors, the coming days are critical. The market is waiting to see if Harvard's disclosure triggers a copycat sell-off among other endowments or if the $87 million vote of confidence in Ethereum sparks a renewed interest in altcoins. In either case, the era of "Bitcoin-only" institutional portfolios appears to be drawing to a close, replaced by a more nuanced, diversified approach to the digital asset class.