BTC Holds $68K As Bitwise Says 54% Drop Echoes
The post BTC Holds $68K As Bitwise Says 54% Drop Echoes appeared on BitcoinEthereumNews.com.
Bitcoin falls 2.76% to $68,582 as spot outflows hit $199 million, extending the drawdown to 54% from October’s all-time high of $126,296. Bitwise CIO Matt Hougan identifies six factors driving the selloff including four-year cycle front-running, attention shift to AI and metals, and Warsh Fed nomination concerns. Recovery requires reclaiming $79,807, while a close below $66,948 opens downside toward the $54,074 demand zone. Bitcoin price today trades near $68,582 after consolidating above the $67,000 support zone following last week’s crash to $60,000. The current drawdown of 54% from October’s all-time high has Bitwise CIO Matt Hougan drawing parallels to the 2018 and 2022 bear market bottoms, suggesting much of the bad news may already be priced in. Bitwise Identifies Six Factors Behind The Crash Hougan outlined six factors contributing to the current selloff in his latest investor memo, providing the clearest institutional explanation for the market collapse. The biggest driver is long-term investors front-running the four-year cycle. Crypto has historically moved in four-year patterns with three up years followed by a pullback. Rather than stand firm, many long-term holders decided to take gains, selling well north of $100 billion in Bitcoin last year. The loss of attention investors to AI and precious metals has drained capital from crypto. Retail participation that once gravitated to crypto’s volatility has shifted to AI stocks and gold, which hit historic highs while Bitcoin collapsed. The October 10 leverage liquidation event following Trump’s surprise 100% tariff on Chinese goods triggered the largest leveraged blowout in crypto history. With traditional markets closed, traders used crypto to express their displeasure, triggering cascading liquidations. Kevin Warsh’s nomination as Fed Chair on January 30 added hawkish monetary policy fears. While Hougan believes Warsh will prove excellent, markets viewed him as the most hawkish candidate among the four options. Rising…
Filed under: News - @ February 9, 2026 3:45 am