"It's February and many traders are feeling a chill that feels a lot like crypto winter. Bitcoin dropped below $75,000 on Sunday, the latest in a series of slides that have dragged down the original cryptocurrency since last autumn. While Bitcoin posed a modest rally on Monday, climbing back towards $80,000 by mid-afternoon, that's still a 37% dip from its record high in October, according to Binance."
"Crypto's downturn is in part spurred by recent macroeconomic factors. One analyst attributes it to soft earnings reports in the tech sector, gold and silver declining, and the nomination of Kevin Warsh as Federal Reserve chair. "Bitcoin's breakdown stems from a confluence of three factors that took markets days to digest: disappointing Magnificent 7 earnings that cracked the AI narrative, a violent precious metals unwind, and uncertainty around Kevin Warsh's Fed Chair nomination," said Jasper de Maere, a desk strategist at Wintermute."
"The Clarity Act was supposed to establish market structure rules for crypto trading but has stumbled in its path to a presidential signature. In January, Coinbase CEO Brian Armstrong pulled his support of the bill because it prohibited customers from earning yield on stablecoins. He then clashed with other prominent voices in the crypto world, putting the future of the bill on even shakier ground."
Bitcoin fell below $75,000 and later ticked back toward $80,000, marking roughly a 37% decline from its October record high. The downturn has been linked to soft tech earnings, a sharp unwind in gold and silver, and uncertainty tied to Kevin Warsh's Fed nomination. A Wintermute strategist cited disappointing Magnificent 7 earnings, a violent precious-metals unwind, and Fed nomination uncertainty as key drivers. The Clarity Act has stalled after Coinbase's CEO withdrew support over a stablecoin yield ban, complicating regulatory prospects. Ethereum and Solana have also fallen notably in recent weeks.
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