Bitcoin Hits Fifth Weekly Decline
Bitcoin is on track for its fifth consecutive weekly decline, the longest losing streak since 2022, as it steadies near $67,000. The level represents a 20% paper loss for most ETF investors amid mounting geopolitical risks and a strengthening U.S. dollar. White House negotiations over a major crypto bill remain stalled, adding regulatory uncertainty.
- The current downturn has erased approximately 47% of Bitcoin's value from its all-time high of over $126,000 in October 2025. This decline is part of a broader crypto market meltdown that has removed over $2 trillion in value from its peak. - A key factor in the price drop is the hawkish stance of the U.S. Federal Reserve, including the nomination of Kevin Warsh as Fed Chair, which has strengthened the U.S. dollar and drawn investors away from riskier assets like cryptocurrencies. - Since November 2025, spot Bitcoin ETFs have experienced significant outflows, with $12 billion withdrawn by early February 2026. In a single day on February 2, outflows topped $528 million. - The speed of the recent crash has been notable, with one day in February registering a -6.05σ move, placing it among the fastest single-day drops in Bitcoin's history, exceeding the FTX collapse (-4.07σ). - The Crypto Fear & Greed Index, a measure of market sentiment, is currently indicating "extreme fear" with a reading of 13 out of 100. - Negotiations over the Digital Asset Market Clarity Act (CLARITY Act) are ongoing, with a third White House meeting scheduled for February 20. A primary point of contention is whether stablecoins should be allowed to pay yield to holders, an issue that has pitted banks against crypto firms. - Despite the downturn, European investors in crypto ETFs have shown resilience, with net inflows of nearly €200 million in the first two weeks of February, suggesting continued long-term conviction. - From a technical perspective, Bitcoin is trading significantly below its 200-day moving average, at a level not seen in the past 10 years, including during the COVID-19 crash or the FTX collapse.
