Bitcoin is having a bad year as price tumbles to fresh lows today: Why does crypto keep falling in 2026?
Yahoo Finance·2026-02-04 15:11

Core Insights - The value of Bitcoin has significantly declined, trading around $75,000 per coin, down over 10% in the past five days, 18% in the past month, and 34% in the past six months [1] - Bitcoin's current value is comparable to levels seen in early April 2025 and November 2024, far from its peak of nearly $125,000 in October of last year [2] - The downturn has erased the gains from the "Trump Bump," with Bitcoin's returns dropping from nearly 30% in Q2 2025 to a decline of 23% in Q4 2025 [3] Market Trends - Ethereum has followed a similar trajectory, with significant increases in Q2 (37%) and Q3 (67%), followed by a 28% drop in Q4 [4] - The crypto market is experiencing a sell-off due to various factors, including investors seeking safer assets amid economic uncertainty [4] - Contributing factors to the decline include a government shutdown delaying economic data releases, rising geopolitical tensions, tariff threats, and fears of increased regulation in the crypto industry [5] Broader Economic Context - The stock market has been flat, with notable earnings announcements causing investor concern [6] - Precious metals have also seen a steep sell-off, with silver experiencing a significant drop of nearly 30% recently [7] - Current declines in major cryptocurrencies include Bitcoin down 13.86%, Ether down 25.56%, and XRP down 15.13% [8]