The "cold shower" in the cryptocurrency market has returned: in less than a week, the value of almost half a trillion dollars has vanished into thin air. According to CoinGecko, the total market value has decreased by $467.6 billion since January 29.
The biggest blow came to Bitcoin, which has traditionally been the market's "locomotive." It is said that on Tuesday, it dropped to its lowest point since Donald Trump was re-elected at the beginning of November 2024. During this process, Bitcoin fell to a 15-month minimum of $72,877 in the US, then partially recovered on Wednesday, trading around $76,600 in the morning London time.
Here the most painful question arises: is the phrase "digital gold" still working? At a time when geopolitical tensions were escalating and the demand for safe assets needed to increase, crypto did not find support. On the contrary, the article states that Bitcoin and US stocks have also declined, with investors "fleeing" to safer assets.
This was accompanied by Michael Berry's warning: he expressed the opinion that Bitcoin, like precious metals, is not finding its place as a hedge instrument, but rather "opens up" as a speculative asset.
The volatility in the market was also felt in futures: over $700 million in long/short positions were forcibly closed in the last 24 hours, and since January 29, the total "cleanup" has exceeded $6.67 billion. Bitcoin ETF flows are also "slippery": on Monday, net income was $562 million, and on Tuesday, a loss of $272 million was recorded.
In short, the mood is now "risk-off." BTC Markets analyst Rachel Lucas described the situation as cautious and protective, stating that scores below 73,000 increased "extreme fear."
The signal for the future is simple: crypto is still a great opportunity, but you can't blindly believe it's a "safe port." If we want confidence to return to the market, it will come not only with hype - with stable liquidity, transparent rules, and real demand. For now, the crypto market reminds us of one thing: there's less romance here, more volatility.
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