Crypto
Bitcoin Continues Months-Long Steep Decline In Value
No customers for the bitcoin ATM (Justin Sullivan/Getty Images)

Bitcoin struggles to reach $70,000 as it heads for worst Q1 since 2018

If bitcoin ends February in the red, it will be its fifth consecutive monthly loss, and one analyst says bitcoin could “revert to $10,000.”

Bitcoin is struggling to stay above $70,000, a level it briefly broke over the weekend, as a lack of catalysts coupled with macro-driven factors are keeping the price stagnant in the mid- to high $60,000s.

Bitcoin is down over 14% in February, and if it closes the month in the red, that will be its fifth consecutive monthly loss and its worst Q1 since 2018, CoinGlass data shows.

“Market cap compression has matured; volatility has declined; participation has thinned. This is a grinding phase. The next impulse will likely be violent, whichever direction it resolves,” Timothy Misir, head of research at Blockhead Research Network, said.

Misir added that the unrealized losses across the network represent 16% of bitcoin’s total market cap, a pain profile similar to early May 2022.

Kyle Rodda, senior financial analyst at Capital.com, told Sherwood News that two big levels stand out for him.

“The first is major support at $60,000, which is the most recent lower low. Second is previous support and possible resistance at $74,000. The trend looks negative, and the price action hints at another possible break lower to test $60,000. But a push above $74,000 would negate some of that bearishness and maybe allay fears BTC is heading lower from here,” Rodda said.

btc 60K support
(Kyle Rodda/Capital.com)

Looking ahead, Rodda said he’s watching Friday’s inflation data because it might provide “a touch of support beneath what is an otherwise pretty strong downtrend” for bitcoin.

“Obviously, the nasty scenario would be if it comes in a bit spicy and casts doubt about the depth and timing of rate cuts. Should that happen, itll add to bitcoins list of woes,” Rodda said.

Meanwhile, Glassnode analysts said bitcoin’s recent drop to $60,000 “imposed drastic psychological pressure on diamond hands, comparable to the May 2022 LUNA crash.”

“Simply put, long-term holders realized significant losses — a rare shift in conviction typically seen in deeper stages of bear markets,” they wrote on X.

BTC chart
(Glassnode)

Bloomberg Intelligence macro strategist Mike McGlone posted an even more bearish outlook on X that the “crypto bubble is imploding,” and bitcoin could “revert to $10,000.”

Not everyone agrees with McGlone’s bleak scenario.

Shawn Young, chief analyst at MEXC Research, told Sherwood he doesn’t believe projections that call for a retest of the $10,000 level. 

“The fundamentals remain — and even though mass acquisitions have slowed, the current buying activity outweighs the coins mined daily. The first crucial sign would be bitcoin reclaiming the $80,000 resistance. If this happens and it stays above that level for a few weeks, a return to $100,000 is likely,” Young said.

Finally, Bitfinex analysts told Sherwood that there is a lack of upward momentum, even though implied volatility has dropped, and de-leveraging is running out of steam.

“But funding rates have yet to show appetite for aggressive re-leveraging and derivatives markets support the view of a stabilization rather than renewed buying,” they said.

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Logan Paul sells ultrarare “Pokémon” card to AJ Scaramucci in a record deal

On Sunday, Logan Paul sold his Pikachu Illustrator Pokémon card for a record $16.5 million to AJ Scaramucci, son of former White House Communications Director Anthony Scaramucci. 

The sale price is more than triple what Paul paid to acquire the card five years ago, nearly $5.3 million, a world record at the time. Since then, many of the trading cards have skyrocketed in value, outpacing baseball cards and even Meta.

The sale has drawn controversy in the crypto industry, as Paul had announced in 2022 that the card would be tokenized and listed on his digital collectibles platform, Liquid Marketplace. Since then, the platform has since been accused of “multi-layered fraud in the crypto asset sector,” according to a 2024 filing from Canada’s Ontario Securities Commission. 

“I had originally offered to sell up to 51% of the Illustrator on Liquid Marketplace but ultimately only 5.4% of the card was sold for about $270k in the Summer of 2022 to fractional owners,” Paul wrote on social media. 

“In May 2024, I bought the card back for the same price it was sold for per the terms of LM and made funds available for users to withdraw. I was told that those funds were available to be withdrawn for approximately a year after being deposited in LM users’ accounts,” Paul added.

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Three Gemini top executives leave in “big shakeup,” shares plummet

Gemini Space Station, the crypto firm the Winklevoss brothers founded, announced it will be parting ways with three executives, COO Marshall Beard, CFO Dan Chen, and CLO Tyler Meade, effective today, according to a February 17 form 8-K filing. Bloomberg Intelligence analyst James Seyffart deemed the announcement “a big shakeup.” 

In addition, Beard resigned from his role as a member of the company’s board of directors.

Shares were down over 13% following the news and are down 35% year to date.

The announcement comes on the heels of the firm’s September IPO and amid an overall downturn in crypto, which is taking a toll on several firms.

Gemini said it does not intend to appoint a successor COO at this time. Kate Freedman will become interim general counsel.

“Many of the duties previously performed by Mr. Beard, including revenue-generating responsibilities, will be assumed by Cameron Winklevoss in addition to his existing responsibilities,” the filing reports.

Meanwhile, Danijela Stojanovic, the firm’s chief accounting officer, will be interim CFO.

Earlier this month, the company slashed 25% of its workforce and shuttered operations in the United Kingdom, European Union, and Australia, per Bloomberg.

The company also pre-announced its 2025 earnings results, expecting net revenue to be between $165 million and $175 million as compared to $141 million for the year ended December 31, 2024. It expects an adjusted loss before tax of between $257 million and $267 million.

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Strategy was responsible for as much as 97.5% of all bitcoin buys from public companies in January

Bitcoin treasury company Strategy accounted for as much as 97.5% of all bitcoin purchases in January made by public companies, “single‑handedly bringing sector‑wide buying back to levels last seen in late summer,” according to a Thursday research report from data analytics firm Bitcoin Treasuries.

Strategy ended last month with 712,647 BTC on its balance sheet, or $47.9 billion, buying 40,150 BTC in January.

MSTR, Strategy’s class A common stock, is trading under the $122 level, while the price of bitcoin sits at the $67,800 mark, both down around 20% since the start of the year.

Meanwhile, asset manager Geode Capital Management boosted its exposure to Strategy and also bought into Trump-backed American Bitcoin, a 13F SEC filing on Monday shows. 

The investment firm, which has over $1 trillion in assets under management, added 175,343 shares of Strategy’s class A common stock since the previous quarter, bringing its total MSTR share count to 3.9 million, worth $477.4 million.

Geode also acquired 1.6 million shares of American Bitcoin, worth $1.8 million, a change from last quarter when the firm didn’t have a stake in the Trump-backed bitcoin treasury firm.

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