I asked the artificial intelligence about the topic and it replied as follows:
In the last days of early 2026, the connection between the "Epstein Files" and the collapse of the cryptocurrency market became the talk of the town, and the reality combines shocking facts revealed by the documents with complex economic conditions that coincided with it.
Here is the detailed analysis of the relationship between them and are we really facing the "end" of crypto:
1. What did the "Epstein files" reveal about crypto?
The massive documents (about 3 million documents) recently released by the U.S. Department of Justice revealed that Jeffrey Epstein was not just a "elite financier", but had hidden fingers in the early days of the digital world:
Early investments: Files revealed that Epstein invested $3 million in Coinbase in 2014 (Series C funding round), and later made huge profits.
Funding for Bitcoin developers: Documents showed donations to Epstein through the "MIT Media Lab" that were intended to fund the salaries of some core Bitcoin developers in 2015.
Technical network relationships: Correspondence was found with figures in "Blockstream" and discussions about Sharia-compliant cryptocurrencies that were intended to be launched.
These revelations caused an "ethical crisis" and a bad reputation for the field, prompting some major institutions to withdraw their liquidity for fear of being associated with names mentioned in the lists.
2. Why did Bitcoin collapse now (February 2026)?
While the "Epstein scandal" was the psychological spark, the collapse from $126,000 (the peak in October 2025) to nearly $60,000 currently has deeper financial causes:
Explosion of the AI bubble: Doubts began to swirl around the actual returns of AI companies, and since Bitcoin miners shifted to providing computing services for AI, they suffered significantly and began selling their Bitcoin holdings to cover losses.
Deleveraging: The collapse was not due to normal "selling", but rather due to a forced closure of billions of dollars in trades that relied on high "leverage".
Policy "Risk Avoidance": With the current political tensions in Washington, investors preferred to flee to gold (which reached historical levels) and leave volatile assets like crypto.
3. Is this the "beginning of the end"?
Historically, Bitcoin has been said to be "over" more than 400 times. The current reality indicates the following:
Not the end, but "cleaning": The market is currently expelling fragile companies and projects that rely solely on "propaganda".
Institutional maturity: Despite the collapse, investment funds (ETFs) still exist, but they are now under stricter scrutiny.
Cycles: What is happening now is a repetition of the "violent downturn" cycle that follows every historical peak, but this time it is "bloodier" due to the overlap of political scandals with economic numbers.
Summary
The relationship between the Epstein scandals and the crypto collapse is a "bad timing" and **"reputation linkage"**. The scandal shook ethical trust, while the numbers and banking benefits shook the prices. Crypto will not end, but it is going through a "difficult" labor phase to redefine itself away from the funds of dubious "elites".