As per Kaiko Research, the defensive positioning in bitcoin has not been reached yet.
- The 32% correction this year, combined with deteriorating macro conditions and Fed leadership transition uncertainty, now represents the most significant drawdown since the 2024 halving for BTC.
- Federal Reserve Governor Christopher Waller earlier had said that the initial optimism around cryptocurrency prices following President Donald Trump’s election appears to be fading.
- At the time of writing, BTC price was down 3% at $67,274.
Bitcoin and other digital assets are grappling with a significant downfall in their prices as selling pressure continues to weigh on cryptocurrencies even as institutional demand has somewhat stabilized after seeing outflows for several weeks.
The continued downturn in bitcoin has prompted retail traders to sell bitcoin as well as expect the world’s largest currency to go even lower from current levels.
Retail expects Bitcoin to hit $30K levels and sees the traditional safe haven assets Gold and Silver outperforming the overall markets.
At the time of writing, BTC price was down 3% at $67,274. It recovered slightly after falling under $66K earlier in the day.
Halfway Point Of Bear Market
Bitcoin has experienced sustained selling pressure through late January and early February, declining from $90,000 to test $60,000 in an intraday capitulation move, before recovering to current levels around $70,000.
The 32% correction, combined with deteriorating macro conditions and Fed leadership transition uncertainty, now represents the most significant drawdown since the 2024 halving for BTC, according to Kaiko Research.
As per Kaiko Research, the defensive positioning in bitcoin has not been reached yet. The key signal to monitor is stabilization or decline in stablecoin dominance, which would indicate capital beginning to redeploy, a prerequisite for sustained recovery.
Fading Crypto Euphoria
Federal Reserve Governor Christopher Waller earlier had said that the initial optimism that lifted cryptocurrency prices following President Donald Trump’s election appears to be fading as the sector is experiencing a significant selloff.
“Some of the euphoria that came into the crypto world with the current administration, some of that’s kind of fading,” Waller had said.
Bitcoin has given up all the gains it made ever since Trump took office as the President for his second term.
How Did Stocktwits Users React?
Retail sentiment around BTC trended in ‘bearish’ territory amid ‘high’ message volume.
One bullish user predicted that BTC will begin to rise in August, this year.
https://stocktwits.com/JaredSotken/message/644634051
One bearish user said that crypto miners will start shutting down machines, if they can’t cash out more than what they spend to mine the bitcoin.
https://stocktwits.com/VicAge/message/644718523