1 month ago
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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 toward $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 Seven 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 stalling of a major crypto bill is also on investors’ minds as they pull back. 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 A...
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