The Currency analytics
By Jean-Luc Maracon
Bitcoin is collapsing. The star cryptocurrency has lost 40% since its peak of $126,000 in October.
The drop brings Bitcoin back to pre-Trump prices. Traders are panicking over this decline that began in November and has been accelerating since. U.S.
In January, the U.S. Treasury Department launched a major crackdown on money laundering through cryptocurrencies. Binance and Coinbase are seeing their volumes melt away.
Bitcoin also faces competition. Ethereum and Solana are gaining market share. They're attracting more and more people, eroding Bitcoin's historical dominance.
On January 15, Kraken suspended its operations following a cyberattack. This added to the instability.
Five days later, the ECB published a report warning about the risks of cryptocurrencies to financial stability. Investors took this as a warning.
BlackRock dropped a bombshell on January 28. According to them, institutional interest in Bitcoin is waning. Too volatile, too murky in terms of regulation.
Grayscale has cut its Bitcoin positions. Down 15% in its flagship fund at the beginning of February.
Mike Novogratz of Galaxy Digital remains optimistic but cautious: "Bitcoin has disruptive potential, but beware of short-term risks." He spoke from New York on February 2.
Fidelity is holding firm. The asset manager maintains its Bitcoin positions and believes in the long-term cycle of cryptocurrencies.
Trading volumes are dropping everywhere. Platforms are seeing their users become more discreet.
Miners are suffering doubly. First, the Bitcoin price is falling, then electricity costs are soaring. Some are shutting down, others are relocating to cheaper countries.
Investment funds are divided. Some, like Ark Invest, see a buying opportunity, while others, like Grayscale, prefer to reduce exposure.
Technical analysis shows Bitcoin below $80,000, far from its October peak. The psychological supports of $70,000 and then $60,000 are in traders' sights.
Global central banks are coordinating their efforts against cryptocurrencies. The Bank of Japan joined the movement on February 3 by announcing restrictions on crypto investments…