sqian@saharalabs.ai

# U.S. Policy Impact on Crypto Markets: February 2026 Analysis ## Executive Summary Recent U.S. policy developments have created significant volatility in cryptocurrency markets, with government shutdown concerns, Federal Reserve leadership uncertainty, and delayed crypto legislation driving a **risk-off environment** that erased nearly $200 billion from total market capitalization at its worst point. The convergence of political uncertainty and macroeconomic pressures has pushed Bitcoin below

# U.S. Policy Impact on Crypto Markets: Triple Threat Analysis ## Executive Summary **U.S. policy developments have triggered a significant crypto market correction**, with three concurrent policy threats creating what analysts term a "perfect storm" for digital assets. The combination of **government shutdown risks** (65-74% probability), **hawkish Federal Reserve leadership transition**, and **stalled crypto legislation** has driven Bitcoin down 31% from its January peak to $67,063 and erase