$BTC Bitcoin has been under heavy pressure over the last few months. The trend is clear and hard to ignore.
October closed at $109,500, down 4% from September
November closed at $90,400, down 17% from October
December closed at $87,500, down 3% from November
January closed at $78,600, down 10% from year-end
Now in early February, Bitcoin is trading near $66,600, another 15% drop in just days
From the highs seen in July, August, and October (around $123k–$126k), Bitcoin is now down almost 50%. At this point, this move is no longer just a correction — it looks more like a broader trend reversal.
Why Is Bitcoin Falling?
Several negative factors are weighing on the market right now.
1. Global Risk & Tech Selloff
Tech markets, especially AI-related stocks, were priced for extreme optimism. As expectations around rapid AI breakthroughs cool down, valuations are collapsing. This negative momentum has spilled over into crypto, even though Bitcoin’s fundamentals remain largely unchanged.
2. New Federal Reserve Leadership
Markets are reacting to the likely appointment of Kevin Warsh as the next Fed Chair. He is viewed as more hawkish, which strengthens the dollar outlook. When expectations shift toward fewer dollars in the future, asset prices across the board tend to reprice lower — including Bitcoin.
3. The Quantum Computing Fear
There is growing discussion around the long-term risk quantum computing could pose to Bitcoin’s security, especially for older wallets. While this risk is still uncertain and likely far off, markets have already begun pricing it in over recent months.
The Bigger Picture
Despite all the fear, the broader environment for Bitcoin remains strong. Institutional interest is growing, tokenization is expanding, and stablecoin adoption continues to rise — with USDT supply hitting an all-time high in January. On top of that, discussions around a U.S. strategic Bitcoin reserve add long-term bullish potential.
Final Thoughts
The current selloff looks driven more by sentiment and macro fears than by Bitcoin’s fundamentals. For long-term investors, this may represent a rare chance to buy Bitcoin at discounted levels.
Opportunities like this don’t usually last long.
