Bitcoin falls below $80,000, ushering in a new round of

# Source: Wall Street CN

By Yang Chen

Bitcoin fell below $76,000 over the weekend, logging its longest monthly losing streak since 2018 on the monthly chart. Market depth for Bitcoin has continued to decline, and the price drop has failed to spark bargain-hunting enthusiasm in the market; regulatory tailwinds have not been able to mask weak demand. The market trends in AI and precious metals have intensified capital competition, eroding Bitcoin's appeal as a risk-hedging tool and speculative asset.

Bitcoin broke below the $80,000 mark and even dipped below $76,000 at one point, pulling back about 40% from its 2025 peak. Market fears are shifting from a price correction to a loss of confidence.

The latest round of decline occurred during the low-liquidity trading hours over the weekend. Bitcoin briefly fell below $76,000 and then oscillated weakly between $77,000 and $79,000, returning to the price range last seen after the tariff shock on the previous "Liberation Day".

What is more unsettling for the market is the lack of a clear trigger for this pullback. There have been no cascading liquidations or systemic shocks in the market; selling pressure is more a product of absent buying interest, fading momentum and weakened conviction, making the price decline more persistent.

At the same time, Bitcoin has been slow to respond to its usual drivers such as geopolitical tensions, a weaker US dollar and a rebound in risky assets. Capital has also not rotated significantly into crypto assets amid the recent sharp volatility in gold and silver, reinforcing the narrative of its phased "decoupling" and declining marginal influence.

## Longest Monthly Losing Streak Since 2018

Bitcoin fell below $76,000 over the weekend. The sharp decline that began in October has morphed into sustained selling. This time, it is not driven by panic, but by a lack of buyers, momentum and conviction.

A nearly 11% drop in January marks Bitcoin's fourth consecutive monthly decline, the longest such streak since 2018.

Unlike the October correction, the current downturn has no obvious catalyst, cascading liquidations or systemic shocks. A decoupling between Bitcoin and other major financial markets can be observed, along with fading demand and reduced liquidity.

More notably, there is a relative lack of optimism on social media, and Bitcoin's decline has barely sparked any bargain-hunting fervor.

## Market Depth Shrinks by Over 30%, Liquidity Crunch Looms

According to Kaiko data, Bitcoin's market depth has dropped by more than 30% from its October peak. The last time liquidity fell to such low levels was after the FTX collapse in 2022.

"From the 2017 peak to the 2018-2019 bear market, we saw spot exchange volumes drop by 60% to 70%," noted Laurens Fraussen, an analyst at Kaiko. By contrast, volume contractions were more moderate, between 30% and 40%, during the 2021-2023 correction.

"In terms of where we are in the current cycle, we're probably about 25% of the way through," Fraussen said. "From a cyclical perspective, we typically see the worst drawdowns around the 50% mark."

He estimates it could take another six to nine months for a meaningful recovery to emerge, and volumes are likely to remain depressed in the later stages of the correction and reaccumulation phase.

## Regulatory Tailwinds Overshadowed by Weak Demand

Despite a string of regulatory wins from the Trump administration's pivot to crypto support and a surge in institutional investment, none of this has been able to stem Bitcoin's decline. Many investors say optimism has been priced in early, with prices rallying well in advance and then stalling.

At the same time, sustained outflows from spot ETFs signal weakening conviction among mainstream buyers, many of whom are now underwater after buying at elevated levels.

Digital asset treasury companies have also slowed their purchasing pace after their own stock price bubbles burst last year, further eroding the market's buying power.

Paul Howard, director at market maker Wincent, said: "I don't think we'll see a new all-time high for Bitcoin in 2026."

## Intensified Capital Competition, Gloomy Recovery Outlook

It took Bitcoin 28 months to recover after its 2021 peak, and nearly three years after the 2017 ICO boom. By these standards, the current slump may still be in its early stages.

Some see a more fundamental challenge: capital competition. Richard Hodges, founder of the Ferro BTC Volatility Fund, said he has warned large Bitcoin holders that patience is needed.

He pointed out that the resurgence of AI-related stocks and precious metals has attracted macro and momentum traders. "Bitcoin is three-year-old news, not today's," Hodges said. "AI stocks, gold, silver are all rallying hard."

Data shows that Bitcoin's volatility is currently lagging behind that of gold and silver, further undermining its appeal as a risk-hedging tool and speculative asset.

## Risk Warning and Disclaimer

The market is risky, and investment needs to be prudent. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial status or needs of individual users. Users should consider whether any opinions, views or conclusions in this article are in line with their specific circumstances. Any investment made based on this article shall be at the investor's own risk.