On 26 February 2026, Indiana lawmakers approved HB1042, a bill to safeguard Bitcoin usage, prohibit discriminatory taxation of digital assets, and allow them in state retirement portfolios. The measure now awaits the governor's signature. Bitcoin traded near $68,437 around the announcement.

According to Google Trends, global searches for "how to buy Bitcoin" have climbed to their highest point in five years, signaling a renewed wave of curiosity from retail users. The rise in beginner-focused queries follows a recent spike in searches for "Bitcoin going to zero," highlighting mixed sentiment around BTC. Bitcoin is trading at $68,301.76, up 4.2% on the day and 2% over the past week, while remaining down 22.4% for the month.

According to an analysis discussing spot Bitcoin ETFs, the current ETF structure and the role of Authorized Participants may be muting the asset's price reaction despite institutional interest. Large financial institutions can hedge with futures and use OTC sourcing, which eases supply shocks and smooths price discovery instead of driving sharp rallies. As a result, Bitcoin's market behavior appears more stable but still cautious, with buyers trying to hold key support zones without clear renewed upward momentum.

On February 25, Hut 8 reported Q4 and full‑year 2025 results, with revenue rising 179% year over year to $88.5 million but coming in below an approximately $95.6 million consensus. The company posted a $301.8 million net loss, driven largely by a $401.9 million non‑cash Bitcoin revaluation, while gross margin improved to 60% as AI and compute contributed 92% of Q4 sales.

Crypto market capitalization rose 3.7% by roughly $120 billion to $2.43 trillion as BTC approached $70,000 before sliding to $68,000. On February 25, 2026, Santiment flagged renewed FOMO, while analysts debated a bull trap versus a relief rally, citing a Binance Fund Flow Ratio of 0.012.

The bankruptcy estate of Terraform Labs has filed a lawsuit accusing Jane Street of insider trading, prompting debate over whether the firm's role in Bitcoin ETFs affects price discovery. Bitwise advisor Jeff Park argues that a regulatory carve-out in Regulation SHO creates a "grey window" where authorized participants like Jane Street, JPMorgan, and Goldman Sachs can short without standard locate requirements, potentially weakening spot-buying incentives. Park concludes that no authorized participant is directly pushing Bitcoin's price down, but the ETF structure may undermine the integrity of the price discovery process, a view that several market participants dispute.

Indiana's House Bill 1042, focused on the regulation and investment of cryptocurrency, has cleared both legislative chambers and is now awaiting the governor's decision. The measure would require certain state-run retirement and savings plans to offer at least one crypto option through self-directed brokerage accounts, while also limiting public agencies from restricting lawful digital asset use or imposing special taxes on such transactions.

Bitcoin’s long-term holders are increasingly active around a cost basis of $38,900 while the spot price trades far higher, highlighting potential downside risk if historical patterns repeat. On-chain indicators show renewed coin movements and modest profit-taking from long-term investors, but recent selling has been led mainly by short-term holders.