February 6 News: Bitcoin prices briefly dropped close to $60,000 this Friday, with the total decline over the past month expanding to approximately 30%, accompanied by over $2 billion in forced liquidations. Based on the all-time high, the current price has fallen nearly 50%, almost erasing all gains since Donald Trump was elected President of the United States.
Bloomberg industry research strategist Mike McGlone openly stated on the program that cryptocurrencies are experiencing a backlash from the “Trump effect.” He believes that Trump’s victory in 2024 and his public support for the crypto industry triggered a rapid influx of speculative funds, which also accelerated the subsequent bubble burst. “This is a classic boom-and-bust cycle,” McGlone said.
The current sell-off is also related to weakening U.S. macroeconomic data. The latest employment report shows that the U.S. added the fewest jobs since 2009 last month, with over 100,000 people unemployed, and major stock indices declining in tandem. Market risk appetite has rapidly cooled, with digital assets bearing the brunt.
On a structural level, McGlone pointed out that Bitcoin faces attention competition from a large number of altcoins. Unlike gold, Bitcoin is not the only choice, as tens of millions of tokens continuously divert funds. For example, Shiba Inu still has a market cap of several billion dollars, and Dogecoin is even larger, which has intensified selling pressure during the bear market.
Macroeconomic policy uncertainty has also amplified volatility. News that Trump nominated Kevin Warsh as the next Federal Reserve Chair sparked market concerns over a hawkish stance. Fabian Dori, Chief Investment Officer at Sygnum Bank, also noted that the global liquidity environment is tightening, putting pressure on risk assets.
Additionally, Dori mentioned that the four-year cycle effect brought by Bitcoin halving is taking effect, with some long-term holders beginning to realize profits. However, he maintains a long-term bullish outlook, believing that after panic is released, the crypto market will gradually recover.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin Enters Best Buy Zone Since 2022, Fourth Parabolic Bitcoin Move Expected
Bitcoin enters best buy zone since 2022.
This leads experts to expect the fourth parabolic Bitcoin move to play out soon.
The price of BTC could hit $190,000 by 2030, presenting a perfect time to accumulate now
The crypto community continues to watch the crypto market closely as the pri
CryptoNewsLand45m ago
Bitcoin ETFs 'will be larger' than gold ETFs: Analyst
Spot Bitcoin exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management (AUM) as investor demand expands beyond the traditional “digital gold” narrative, according to ETF analyst James Seyffart.
“There are just more use cases of why somebody would put a Bitcoin ETF in a p
Cointelegraph1h ago
Bitcoin's $1.3 trillion security race: Key initiatives aimed at quantum-proofing the world's largest blockchain
Quantum computers capable of breaking the Bitcoin blockchain do not exist today. Developers, however, are already considering a wave of upgrades to build defenses against the potential threat, and rightfully so, as the threat is no longer hypothetical.
This week, Google published research
CoinDesk2h ago
