Bitcoin has settled into a narrow trading range as investors seek direction following a market collapse that erased gains made since the US presidential election. The recent downturn appears to have spurred crypto hedge funds to increase their cash holdings. This shift highlights how deeply the $US2 trillion rout since October has shaken professional investors, making conviction elusive as 2026 approaches.
According to Bohan Jiang, senior derivatives trader at FalconX, “Bitcoin has found a new range in the mid 60s, as it chops around with no real directional conviction.” The notoriously volatile cryptocurrency traded in a range of less than 3 per cent and was little changed at around $US66,700 during New York trading hours. FalconX is a cryptocurrency trading platform for institutional investors.
On February 6, bitcoin tumbled as much as 13 per cent, marking its most significant drop in about four years. The token is down about 50 per cent from its all-time high of almost $US127,000, which was reached in early October.
Cryptocurrencies have remained fragile since liquidations in October eroded market confidence. Bitcoin plunged 24 per cent in the three months ended December 31, its steepest decline since 2022, which weighed on trading volumes across digital-asset markets.
