itstargetnews
Bitcoin’s brief rally faded on Wednesday as volatility in the world’s largest cryptocurrency continued.
Bitcoin It was trading at about $66,166 at 10:21 a.m. ET on Wednesday, down about 4% on the day.
The digital currency has been on a downward trajectory since hitting all-time highs above $126,000 in October. Sell-off intensified last month. On February 5, Bitcoin fell below $70,000 and fell to just above $60,000, which is considered a key level.
Subsequently, Bitcoin recovered from the lows and returned above $70,000, but has struggled to rise and remains within the range of $66,000 to $72,000.
On Thursday, Bitcoin was down about 47% from its all-time high.
Bitcoin price over the past month
Several factors are weighing on the cryptocurrency market, including volatility in U.S. technology stocks, with which cryptoassets tend to move in tandem.
Meanwhile, the February 5 sell-off was triggered by a wave of liquidations — if the price of Bitcoin hits a certain point, traders are forced to close their positions. This has a knock-on effect that intensifies sales. The pace of these liquidations has since slowed.
Investors are also considering whether there will be a shift in U.S. monetary policy after U.S. President Donald Trump nominates Kevin Warsh as president. Late last month, the Chairman of the Federal Reserve.
Selling by Bitcoin exchange-traded fund (ETF) issuers, which are major holders of Bitcoin, has led to outflows from these ETFs. This adds to the pressure on digital currencies. However, in the past three days, the Bitcoin ETF has recorded net inflows.
Bitcoin cycle back in focus
Market participants are watching to see if Bitcoin’s typical cycle remains intact. This refers to the historical pattern following halving events, which typically results in cryptocurrencies reaching new all-time highs and a subsequent crash before the new high.
Bitcoin Halving—— The event whose code is written This happens every four years – reducing the rewards given to Bitcoin miners and effectively slowing the supply of Bitcoin on the market. Supply tightness typically occurs before Bitcoin rallies to new record highs. The most recent halving occurred in April 2024.
Regarding whether a typical Bitcoin End of cycle or if pattern is broken. But investors and analysts say the cycle is very much intact.
“I expect 2026 to be a four-year cycle bear market,” Canary Capital CEO Steven McClurg told CNBC on Wednesday. “We’ve gone through several four-year cycles since the launch of Bitcoin, and this is no different from other cycles.”
McClurg added that he expects Bitcoin to fall to $50,000 in the summer before “the situation reverses in the fall.”
Markus Thielen, 10X Research told CNBC Bitcoin may have fallen to the $50,000 level last week.
