The Currency analytics
By Jean-Luc Maracon
Bitcoin is experiencing its worst losing streak since 2017. Seven consecutive days in the red. It's painful.
The leading cryptocurrency has lost 10% this week and is now at $59,500. Major holders are starting to offload their positions.
Changpeng Zhao of Binance says it's normal.
"The market is going through a natural correction," said the Binance CEO during a conference in Hong Kong. He believes these adjustments are necessary for the market's health.
Speculators are turning to Ethereum. ETH is up 2% this week. Not a huge gain, but better than Bitcoin. Vitalik Buterin remains optimistic about his platform.
Grayscale Bitcoin Trust is also losing value.
The fund saw its net asset value drop on February 6. The managers have yet to comment. Radio silence. Meanwhile, Jack Dorsey continues to defend Bitcoin.
Glassnode data shows something interesting. The number of bitcoins in long-term wallets is at a record high. This means some hodlers are keeping their coins despite the drop.
Square is exploring new blockchain integrations according to an announcement on February 11. This gave Bitcoin a small boost. Very small. The downward trend remains dominant.
Cathie Wood of Ark Invest keeps the faith. "Bitcoin's disruptive potential remains intact despite the volatility," she says. Her fund still holds a significant amount of crypto.
The SEC remains silent on regulation. No new rules announced. Investors are waiting for clarifications. Uncertainty weighs on prices.
In 2018 and 2022, similar declines preceded long bear markets. Industry veterans remember. They fear history might repeat itself. New investors are discovering crypto volatility.
Exchange platforms are seeing their revenues fall. Less volume equals fewer commissions. Binance, Coinbase, Kraken... all in the same boat. They hope the storm will pass quickly.
Some analysts talk of capitulation. Others see a buying opportunity. The market remains divided on the direction to take.
Bitcoin miners are also feeling the pressure. Riot Blockchain and Marathon Digital saw their shares drop by 18% and 22% respectively this week.