What Is Bitcoin Dump? The Opportunity to Bottom Out Cryptocurrency in 2026

Dump in the crypto market is a phenomenon of mass sell-offs, where selling pressure is so strong that asset prices plummet freely over a short period. Currently, Bitcoin is experiencing a typical dump at the beginning of 2026, with prices continuously declining over multiple months and breaking through key support levels.

What Is a Dump and Why Does the Crypto Market Experience Sharp Price Drops in Early Year

A dump is not just a normal price decline but a rapid collapse caused by concentrated selling pressure. The early 2026 crypto market has just gone through a prolonged downtrend:

• In January, Bitcoin adjusted by 25%
• In February, it continued to drop another 25%, completely breaking previous high levels when breaking the 75K support

The main cause of this dump stems from macroeconomic factors: large capital flows are taking profits from previous investments. The AI story, which the tech industry and international investors hyped throughout 2023, has gradually cooled off and even become a concern for the stock market. As a result, tech stocks faced heavy selling pressure, with Amazon experiencing an 11% decline. Other giants like Alphabet, NVDA, and Microsoft are also about to face similar pressure as the “sell in May” season approaches.

That’s not all. Gold and silver also weakened amid the strong resurgence of the dollar. When financial officials like Scott Bessent (U.S. Treasury Secretary) and potential Fed Chair candidates like Kevin Warsh support a strong dollar stance, the dollar today has become an enemy of all risky assets, including Bitcoin.

Bear Market Cycle 2026: When Major Assets Sell Off Together

This dump is unlikely to end soon. Looking back at previous crypto market cycles, each downtrend phase was accompanied by a major FUD event around mid-year to shake out weak-handed investors, followed by a decline at the end of the year that eroded everyone’s confidence.

In 2022, the market was hit by shocks from the collapse of the 3AC fund and later the FTX and Alameda Research disaster. These events triggered panic selling across the entire market. In 2026, signs suggest that a similar “black swan” is secretly unfolding: recently, Kyle Samani, CEO of the investment fund Multicoin Capital, resigned—an indicator reminiscent of 2022 when Sam Trabucco, co-CEO of Alameda Research, resigned in August just months before the FTX collapse.

When Is the Safe Time to Buy Bitcoin Dip?

For now, it’s best not to rush in and buy immediately. The lowest point of the dump is expected to occur after May, when the market is extremely panicked. Based on past cycle events, analysts predict this dip will fall into the 35-45K range, happening around November and possibly linked to a political event.

Currently, Bitcoin is priced at 68,037.93 USDT with a 0.16% increase in 24 hours, according to data on 02/22/2026. However, this is just a lull within the downtrend—dumping has not yet stopped.

Effective Strategies to Protect Against Dump Risks

Instead of going all-in at once, the safest approach is to divide your capital into six equal parts and buy Bitcoin steadily from June to December. This method, known as dollar-cost averaging, helps minimize risk while prices are still in a decline phase.

New investors entering the crypto market should recognize that the upcoming period will be very challenging, as the atmosphere is dominated by FUD and fear. But this is also the golden opportunity to buy Bitcoin at the lowest prices in the next four years—so long as you have a proper strategy and patience to wait.