Bitcoin's decline continued on Thursday (Feb. 6), with the cryptocurrency dropping as much as 4.8% to US$60,033—its lowest level since October 2024—erasing all gains since U.S. President Trump's election. Other cryptocurrencies, related ETFs, and companies holding significant crypto assets, such as Strategy, also faced selling pressure.
Chris Newhouse, Head of Business Development at Ergonia, noted, "Fear and uncertainty in the market are evident. In the absence of committed buyers, every wave of ETF redemptions and liquidations triggers a chain reaction." He added that this "amplifies each round of declines and reinforces defensive positioning."
Ryan Rasmussen, Head of Research at Bitwise Asset Management, suggested that the crypto market is currently in the "despair phase" of a correction. "Momentum has taken over, and crypto bear markets tend to end in indifference, not despair," he commented.
Meanwhile, the inflow into U.S. spot Bitcoin ETFs, which had long supported Bitcoin's price last year, has reversed as prices plummet. According to Bloomberg data, approximately US$2 billion has flowed out of Bitcoin ETFs in just the past month. Over the past three months, the figure is even more striking, with over US$5 billion withdrawn.
At the same time, traders are becoming increasingly defensive in the options market. Data from Deribit shows that mid-term contracts expiring at the end of June reflect a more pessimistic outlook on Bitcoin prices, with open interest most concentrated around US$60,000 and US$20,000.
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