Bitcoin has slipped below $US76,000, marking a significant downturn from its peak in 2025. The world’s largest cryptocurrency has dropped approximately 40 per cent, revisiting levels last seen after the “liberation day” tariff fallout. What began as a sharp crash in October has evolved into a more persistent sell-off, characterised by an absence of buyers, waning momentum, and diminishing confidence.
Unlike previous drawdowns, this decline lacks an obvious trigger, such as cascading liquidations or systemic shocks. Instead, fading demand and thinning liquidity have contributed to Bitcoin’s decoupling from broader market trends. It has failed to respond positively to geopolitical tensions, dollar weakness, or risk rallies. Even during recent volatility in gold and silver markets, Bitcoin has seen no positive rotation.
Bitcoin’s struggles are reflected in its performance, with an almost 11 per cent fall in January, marking its fourth consecutive monthly decline. This represents the longest losing streak since 2018, following the crash after the 2017 boom in initial coin offerings. According to Paul Howard, a director at market maker Wincent, a new all-time high for Bitcoin in 2026 is unlikely.
Despite regulatory tailwinds from the Trump administration’s pro-crypto stance and increased institutional investment, optimism appears to have been premature. Spot ETFs are experiencing outflows, indicating weakening conviction among mainstream buyers, many of whom are now facing losses. Major institutional players, including digital asset treasuries, have also reduced their purchases after experiencing stock price corrections, further dampening demand. Bitcoin’s market depth remains significantly below its October peak, reminiscent of liquidity levels following the FTX collapse in 2022.
