Bitcoin was trading near $66,000 on February 13, 2026, extending a months-long decline that has erased its post-election gains and unsettled crypto markets globally. While controversy surrounding the Trump-linked World Liberty Financial has intensified in Washington, available evidence suggests macroeconomic forces, not a single political scandal, are driving the broader sell-off.
The world’s largest cryptocurrency has fallen sharply from its October 2025 peak above $126,000. According to Reuters and Associated Press reporting cited in the attached analysis, thin liquidity, reduced risk appetite, and uncertainty around US Federal Reserve policy have weighed heavily on prices. Bitcoin briefly touched levels near $60,000 earlier in February before stabilising around $66,000.
For European policymakers watching crypto volatility through the lens of financial stability and central bank digital currency design, the episode underscores a recurring pattern. In periods of monetary tightening and equity market stress, Bitcoin behaves less like a hedge and more like a high-beta technology stock.
World Liberty Financial and the UAE Deal
World Liberty Financial, a decentralised finance platform launched in September 2024, has become central to political debate in the United States. The platform issues a USD1 stablecoin and a WLFI governance token, integrates with Aave, and has applied for a national trust bank charter under new US stablecoin legislation.
The Trump family controls the project through DT Marks Defi LLC and reportedly receives the majority of token-sale revenue. In January 2025, shortly before Donald Trump’s inauguration, a company controlled by Sheikh Tahnoon bin Zayed Al Nahyan of the United Arab Emirates agreed to acquire a 49 percent stake in World Liberty Financial for $500 million.
Media investigations have questioned the commercial rationale of the deal and raised concerns about potential conflicts of interest. US House Democrats have launched inquiries, and critics argue that the structure may raise constitutional issues. The White House has denied any conflict, stating that the president is not involved in operational decisions.
Subsequent developments added complexity. A UAE state-backed fund later invested $2 billion in Binance and selected USD1 as the settlement currency, rapidly increasing the stablecoin’s circulation.
Market Impact and Broader Context
Trump-linked digital assets have not been immune to the downturn. The WLFI token’s reported market value fell significantly from its September highs, while the $TRUMP memecoin dropped sharply from peak levels. Companies with large crypto exposure have revised earnings forecasts as prices declined.
However, analysts cited in the document emphasise that broader macroeconomic headwinds remain the dominant factor. High interest rates, lower liquidity, and reduced speculative appetite have triggered liquidations across the crypto market. The fear-and-greed index fell to extreme fear territory during early February, highlighting widespread investor caution.
For Europe, the episode carries important lessons. First, it reinforces the European Central Bank’s argument that crypto assets can amplify financial cycles. Second, it highlights how political and governance risks around privately issued digital currencies can quickly become systemic concerns when stablecoins reach a multi-billion-dollar scale.
As the ECB advances work on the digital euro and the EU implements its Markets in Crypto-Assets regulation, policymakers will be watching whether stablecoin governance models tied to political actors create additional financial stability risks.
There is, at present, no conclusive evidence that investigations into World Liberty Financial alone triggered Bitcoin’s decline. The downturn appears rooted in global monetary conditions and market structure dynamics, with political controversy acting as a secondary confidence factor.