Crypto’s decline is partly fueled by recent macroeconomic factors. One analyst attributed this to soft earnings reports in the tech sector, declines in gold and silver, and the nomination of Kevin Warsh as chairman of the Federal Reserve.

“The collapse of Bitcoin came from a confluence of three factors that took the market days to melt: the disappointing Magnificent 7 earnings that destroyed the AI ​​narrative, a violent precious metals rest, and uncertainty over the nomination of the Fed Chair of Kevin Warsh,” said Jasper de Maere, a desk strategist at Wintermute.

Stopping a major crypto bill was also on the minds of investors as they retreated. The Clarity Act was supposed to establish market structure rules for crypto trading but stumbled on its way to a presidential signature. In January, Coinbase CEO Brian Armstrong withdrew his support for the bill because it prohibits customers from earning income in stablecoins. Then he clashed with other prominent voices in the crypto worldwhich puts the future of the bill on firmer ground.

As investors shunned the dollar, precious metals also saw volatile price movements. Gold and silver reached record highs last week, falling only 11% and 32%, respectively.

Cryptocurrencies outside of Bitcoin are also sputtering. Ethereum down almost 24% last month to its current price of about $2,354 and Solana decreased by almost 20% to its price of about $105, according to Binance.

The crypto world is no stranger to down cycles. The last significant crypto winter occurred in 2022 and 2023, when TerraForm Labs and FTX collapsed under the watch of disgraced crypto figures Do Kwon and Sam Bankman-Fried. No major scandals have fueled the decline this season. Instead, investors avoid risky assets in uncertain times.

“Crypto has been in a bear market longer than many appreciated, but it was an organic deleveraging rather than a structural crisis,” de Maere added.