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Bitcoin prices fall even more: Why ‘Tinkerbell Effect’ is fading

Published: Wednesday, February 11, 2026 · 4:19 PM  |  Updated: Wednesday, February 11, 2026 · 4:19 PM

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00:00 Brian

Talk to me about what you wrote about this Tinkerbell effect being over. Explain this to us.

00:06 Marion

Hi Brian, very nice to be with you today. Uh, so yes, this Tinkerbell effect is when, uh, the price of Bitcoin keeps increasing because people think that it’s going to continue to increase.

00:19 Marion

Uh, so it increased up to a certain point where people realized that actually the price is very, very high, very elevated.

00:27 Marion

So, basically it’s when the price is based on wishful thinking, much more than fundamental factors.

00:33 Brian

Why did this enthusiasm, Marion, just completely go away for Bitcoin?

00:41 Brian

Uh, every we coming into this year, everybody was so excited about Bitcoin, all the regulatory backdrop. It’s amazing. You must own Bitcoin. But that sentiment has turned south very quick.

00:53 Marion

So, I I wouldn’t say so. I I would say we are seeing another episode of volatility. So volatility is a feature of Bitcoin, it’s not a bug.

1:04 Marion

And what we’ve seen recently, and I would say since October is a lot of ETF outflows. Uh, we are also experimenting a store regulation, uh clarity Act, uh and OsFed and a risk of sentiments.

1:15 Marion

And I want to go back on the regulatory uncertainty uh because last year, uh the US signed uh the digital asset markets uh for stable coins, which was the stable coin the genius Act.

1:29 Marion

Uh now the clarity Act is stalled in Congress and it provides an additional layer of uncertainty.

1:36 Marion

And we are also seeing uh more uh pessimism uh and we can really see it in terms of uh institutional outflows as I mentioned with the ETF, but also uh for consumers, um,

1:47 Marion

in our latest survey, uh we looked at the US crypto adoption and in July, we had 17% of Americans who had invested in crypto and the number was down to 12% uh in December.

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