Veteran fund manager Mark Yusko of Morgan Creek Capital has issued a stark warning regarding the structural health of the crypto market, cautioning that
BTC
$68 034
24h volatility:
3.1%
Market cap:
$1.36 T
Vol. 24h:
$52.84 B
faces a critical moment ahead of upcoming regulatory shifts. The Bitcoin price is currently trading around $66,000, nicely recovering from its recent drop.
Yusko argues that the market is underestimating the potential impact of the upcoming CLARITY Act.
The warning follows Bitcoin’s price action, consolidating just below key overhead levels. The asset’s inability to reclaim higher ground is raising fears that failing to hold current support could trigger another slide towards the $63,000 zone.
This technical weakness coincides with a macro environment defined by the high-stakes “Crypto Regulation 2026” framework being finalised in Washington.
Odds of Clarity Act passing in 2026 have just fallen from 72% down to 42%
Seems like they’re just playing games… pic.twitter.com/ij4nSUKRp2
— Dan Gambardello (@dangambardello) February 23, 2026
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Mark Yusko’s Structural Warning for Bitcoin Price
Mark Yusko, a long-time advocate for digital assets, has shifted his tone in recent weeks, expressing that he is “more concerned than ever” about the asset’s near-term future. Speaking on the structural integrity of the market, Yusko emphasized that while Bitcoin has survived exchange collapses and harsh bear markets before, the current setup presents a unique challenge. His core thesis rests on the idea that the market is not pricing in the friction that will arise from the implementation of the CLARITY Act and related legislative moves.
Yusko posits that the transition to a fully regulated environment in 2026 may force a temporary but severe dislocation in liquidity. Unlike previous cycles where downturns were clear buying opportunities, the Morgan Creek Capital founder suggests that the proactive upgrading of regulatory frameworks usually creates a period of dormancy or decline before institutional capital can fully engage.
This cautious stance aligns with other institutional voices who argue that the market is “fighting the last war” regarding price drivers, ignoring the existential shifts in how crypto assets will be classified and settled.
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Bitcoin Price Analysis: $69,000 Resistance and the Road to $63,000
From a technical perspective, the price action validates the fundamental caution. Bitcoin is currently pinned below a formidable BTC Resistance level at $69,000-$71,000. Multiple attempts to breach this ceiling have been met with distinct selling pressure, indicating probable exhaustion among buyers.
Bitcoin Price Prediction Source: TradingView
Bitcoin is currently trading at $66,970, reflecting a strong intraday rally of around 4-5%, amid recovering momentum after recent dips.
Next resistance lies near $69,000, where recent highs and psychological barriers have capped upside.
If momentum doesn’t continue, a retest of the $63,000 level is possible. This zone is critical; technical outlooks indicate that losing the $60k-$63k support could open the door to a much sharper decline, potentially retesting the psychological $60,000 barrier.
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ETF Flows and Sentiment Signal Caution Ahead of Regulatory Decision
Supporting the bearish case is the latest data on fund flows. Spot Bitcoin ETFs have recorded a noticeable reversal in sentiment, with weeks of net outflows. This retreat by institutional capital suggests that the “smart money” is heeding the warnings regarding the regulatory overhang.
Bitcoin ETFs are finally recording a positive net inflow today but will this trend continue?
Feb 25 Update:#Bitcoin ETFs:
1D NetFlow: +3,732 $BTC(+$247.72M)🟢
7D NetFlow: -2,285 $BTC(-$151.65M)🔴#Ethereum ETFs:
1D NetFlow: -2,311 $ETH(-$4.55M)🔴
7D NetFlow: -108,385 $ETH(-$213.52M)🔴#Solana ETFs:
1D NetFlow: +60,242 $SOL(+$5.12M)🟢
7D NetFlow: +293,324… pic.twitter.com/Y5WWyuQM5a— Lookonchain (@lookonchain) February 25, 2026
Sentiment metrics have tracked this institutional caution. ETF outflows and extreme fear readings in the sentiment indices highlight a fragile market structure.
EXPLORE: BITCOIN PRICE PREDICTION: ETFS RECORD OUTFLOWS
Can Bitcoin Hyper’s Layer-2 Infrastructure Withstand the Regulatory Headache?
While the broader market grapples with the uncertainty of the CLARITY Act and Mark Yusko’s structural warnings, infrastructure plays continue to attract attention for their utility-focused value propositions. Investors hedging against spot price volatility are increasingly looking at Layer-2 solutions like Bitcoin Hyper (HYPER) that are building the rails for the next phase of adoption.
Bitcoin Hyper is designed to bring high-speed transaction capabilities to the Bitcoin network, utilizing a Solana Virtual Machine (SVM) integration to bridge Ethereum’s flexibility with Bitcoin’s security. As regulatory frameworks potentially squeeze speculative trading, the demand for scalable, low-cost infrastructure that supports actual usage, such as DeFi and payments on Bitcoin, is expected to grow. The project’s canonical bridge allows for seamless asset transfer, positioning it as a critical piece of plumbing for the regulated future Yusko anticipates.
The Bitcoin Hyper presale offers early participants a chance to acquire tokens at a discounted entry point before the mainnet launch. The project emphasizes transparency, citing full audits from Coinsult and SpyWolf to ensure contract security. With the presale currently active, the team is building a robust community of developers and stakers focused on Layer-2 utility.
Traders interested in diversifying beyond spot BTC exposure can join the Bitcoin Hyper community on Telegram and X for real-time updates.
Visit Bitcoin Hyper Here
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel leverages his background in on-chain analytics to author evidence-based reports and deep-dive guides. He holds certifications from The Blockchain Council, and is dedicated to providing “information gain” that cuts through market hype to find real-world blockchain utility.
