The Currency analytics
By Jean-Luc Maracon
On February 5, the world's leading cryptocurrency fell below the $70,000 mark for the first time since October 2024. Traders are panicking.
Since December, it's been a downward spiral.
Bitcoin was still flirting with $90,000 two months ago. Now? Investors are rushing for the exit. Beijing has tightened its stance on cryptos. New restrictions.
Ethereum and Ripple are also suffering. Down 15% for one, down 20% for the other in a month. Massive sell-offs are happening. Confidence is eroding.
"We're in a pure panic scenario," says a market analyst. Others speak of "extreme fear." Memories of 2022 resurface. Terra Luna collapsing. FTX imploding.
But some see opportunities. Investment funds are watching for the right moment to enter. Institutional investors remain on alert.
Voices are calling for more regulatory clarity. "We need precise rules," insist industry players. Clear regulation could certainly reassure.
Changpeng Zhao of Binance saw sales volumes explode on February 5. According to him: "Automated algorithms amplify the movement.
At Coinbase, the same observation. Brian Armstrong, the CEO, noted that volumes have doubled compared to normal.
MicroStrategy is holding firm. Michael Saylor, the executive chairman, stated on February 4: no intention of selling their bitcoin reserves despite the drop.
In Japan, there's also concern. Shunichi Suzuki, the Finance Minister, is closely monitoring. "We're looking at the impact on financial stability.
Kristalina Georgieva, the managing director, called on February 6 for "increased monitoring of financial risks" related to cryptos.
In Europe, Christine Lagarde organized an emergency meeting at the ECB. "We need international cooperation to manage these risks," she said.
Fidelity Investments is swimming against the tide. Abigail Johnson, the CEO, revealed on February 7 that the fund had increased its exposure to cryptos despite the decline.
In New York, Letitia James, the state attorney general, launched an investigation on February 8 into the practices of exchange platforms.