Core Viewpoint - The People's Bank of China and eight other departments have reiterated a strict prohibition on virtual currency activities, classifying them as illegal financial activities, and emphasizing the risks associated with such investments [1][3]. Group 1: Regulatory Stance - The recent notification reinforces a long-standing policy against virtual currencies, stating that they do not hold the same legal status as fiat currencies and are illegal to operate within the country [3]. - Previous regulations from 2013 and 2021 have consistently defined virtual currencies like Bitcoin and stablecoins as non-currencies, reiterating their prohibition in domestic markets [3]. Group 2: Market Impact - Following the announcement, Bitcoin's price fell below $70,000 for the first time since November 2024, with a maximum drop of 9.74% within 24 hours, leading to significant losses for many investors [1]. - Other cryptocurrencies, including Ethereum, Solana, Binance Coin, and Dogecoin, also experienced substantial declines, resulting in severe financial repercussions for investors [1]. Group 3: Investor Guidance - Investors are advised to avoid falling for myths of quick wealth in the cryptocurrency market and to develop a proper investment mindset, enhancing their risk awareness and ability to identify potential dangers [4].

Core Viewpoint - The People's Bank of China and eight other departments have reiterated a strict prohibition on virtual currency-related activities, classifying them as illegal financial activities [1][3]. Group 1: Regulatory Stance - The recent notice emphasizes that virtual currencies do not have the same legal status as fiat currencies and that all related activities are strictly prohibited within the country [3][4]. - This regulatory stance has been consistent since 2013, with previous notices reinforcing the illegality of virtual currency transactions and their classification as illegal financial activities [3][4]. Group 2: Market Impact - Following the announcement, Bitcoin's price fell below $70,000 for the first time since November 2024, with a maximum drop of 9.74% in 24 hours, leading to significant losses for investors [1]. - Other cryptocurrencies, including Ethereum, Solana, Binance Coin, and Dogecoin, also experienced substantial declines, resulting in many investors facing severe financial repercussions [1]. Group 3: Investor Caution - Investors are warned against believing in myths of quick wealth in the cryptocurrency market and are encouraged to adopt a correct investment mindset and enhance their risk awareness [4].

Core Insights - Bitcoin price has experienced a significant decline, dropping below $60,000 for the first time since October 2024, marking a 52.81% decrease from its historical high of $127,000 reached on October 5, 2025 [1][3] - The recent sell-off was driven by pessimistic investor sentiment and ongoing sell-offs in the international financial markets, with Bitcoin's price falling approximately 25% over five days starting February 1 [3] - Market liquidity and confidence have contracted, exacerbated by increased leverage liquidations, with over 586,219 traders liquidated in the last 24 hours, totaling $2.665 billion [3] Market Dynamics - Bitcoin's price has fallen below the average holding cost of U.S. spot ETFs (approximately $87,830), indicating that most institutional holdings are now at a loss, which further suppresses bottom-fishing interest [3] - Retail investor interest has cooled, leading to reduced trading volumes and increased volatility, with market sentiment indicators showing a shift towards risk aversion [3][4] - Historical data suggests that Bitcoin has previously experienced declines of over 75% during major bear markets in 2014, 2018, and 2022, indicating that the current drop has not yet reached extreme historical levels [4] Broader Cryptocurrency Market - Other cryptocurrencies such as Ethereum, Solana, Binance Coin, and Dogecoin have also seen significant price declines, reflecting a broader market trend [4] - The current market sentiment is increasingly risk-averse, with price movements being driven more by balance sheet mechanisms rather than narrative logic [4]

Core Viewpoint - The cryptocurrency market is experiencing significant declines, with Bitcoin falling below $70,000 for the first time since November 2024, driven by investor pessimism and ongoing sell-offs in international financial markets [1] Group 1: Market Performance - Bitcoin's price index dropped to a low of $66,835 on the morning of February 5, with a maximum decline of 9.74% over the past 24 hours [1] - Other cryptocurrencies, including Ethereum, Solana, Binance Coin, and Dogecoin, also saw substantial price decreases [1] Group 2: Investor Sentiment - Deutsche Bank analyst Marion Labre states that the market sell-off indicates traditional investors are losing interest, leading to increased pessimism regarding cryptocurrencies [1] - James Butterfield, head of research at a UK cryptocurrency investment firm, highlights that $70,000 is a critical psychological price level for Bitcoin, suggesting that if it cannot hold this level, prices may drop further to the $60,000 to $65,000 range [1]

Core Viewpoint - The cryptocurrency market is experiencing significant declines, with Bitcoin falling below $70,000 for the first time since November 2024, driven by investor pessimism and ongoing sell-offs in international financial markets [1] Group 1: Market Performance - Bitcoin's price index dropped to a low of $66,835 on the morning of February 5, marking a maximum decline of 9.74% within the past 24 hours [1] - Other cryptocurrencies, including Ethereum, Solana, Binance Coin, and Dogecoin, also saw substantial price decreases [1] Group 2: Investor Sentiment - Analysts from Deutsche Bank indicate that the market sell-off signals a loss of interest among traditional investors, contributing to increased pessimism regarding cryptocurrencies [1] - James Butterfield, head of research at a UK cryptocurrency investment firm, highlights that $70,000 is a critical psychological price level for Bitcoin, suggesting that failure to maintain this level could lead to further declines to the $60,000 to $65,000 range [1]

Core Viewpoint - The prices of major cryptocurrencies, including Bitcoin and Ethereum, experienced significant declines on January 31 due to market expectations of a "hawkish" monetary policy from the Federal Reserve, influenced by President Trump's nomination of Kevin Walsh as the next Fed Chair [1][2]. Group 1: Cryptocurrency Price Movements - Bitcoin's price fell to $77,082.48, with a maximum decline of 8.32% in the past 24 hours [1]. - Ethereum's price dropped to $2,354.67, experiencing a maximum decline of 12.84% within the same timeframe [1]. - Other cryptocurrencies such as Solana, Dogecoin, and Binance Coin also saw substantial price drops [2]. Group 2: Market Analysis and Sentiment - Analysts attribute the sell-off in high-risk cryptocurrencies to the strong expectations of a hawkish monetary policy from the Federal Reserve, which has led to a stronger dollar and a significant pullback in precious metal prices [2]. - Marcus Tielen, founder of 10x Research in Singapore, noted that the market perceives cryptocurrencies not as a hedge against currency depreciation but rather as "over-speculative assets," indicating a potential retreat from speculative trends once loose monetary policies end [2].

Core Viewpoint - The prices of major cryptocurrencies, including Bitcoin and Ethereum, experienced significant declines on January 31 due to market expectations of a "hawkish" monetary policy from the Federal Reserve, influenced by the nomination of Kevin Walsh as the next Fed Chair by President Trump [1][2]. Group 1: Cryptocurrency Price Movements - Bitcoin's price fell to $77,082.48, with a maximum decline of 8.32% in the past 24 hours [1]. - Ethereum's price dropped to $2,354.67, experiencing a maximum decline of 12.84% within the same timeframe [1]. - Other cryptocurrencies such as Solana, Dogecoin, and Binance Coin also saw significant price drops [2]. Group 2: Market Influences - The market's strong expectation of a hawkish monetary policy from the Federal Reserve has led to a stronger US dollar and a significant pullback in precious metal prices [2]. - The announcement of Kevin Walsh's nomination as the next Fed Chair has intensified these hawkish expectations, prompting sell-offs in high-risk and high-volatility assets like cryptocurrencies [2].

Core Viewpoint - The prices of major cryptocurrencies, including Bitcoin and Ethereum, experienced significant declines on January 31 due to market expectations of a "hawkish" monetary policy from the Federal Reserve, following the nomination of Kevin Walsh as the next Fed Chair by President Trump [1] Group 1: Cryptocurrency Price Movements - Bitcoin's price fell to $77,082.48, with a maximum decline of 8.32% in the past 24 hours [1] - Ethereum's price dropped to $2,354.67, with a maximum decline of 12.84% in the past 24 hours [1] - Other tokens such as Solana, Dogecoin, and Binance Coin also saw significant price drops [1] Group 2: Market Analysis - Analysts believe that the market's expectation of Walsh's "hawkish" monetary policy has led to a stronger dollar and a significant pullback in precious metal prices, resulting in a sell-off of high-risk, high-volatility cryptocurrencies [1] - Marcus Tielen, founder of 10x Research in Singapore, stated that cryptocurrencies are no longer viewed as a hedge against currency depreciation but rather as "over-speculative assets" [1] - The end of loose monetary policy is expected to lead to a retreat in speculative trading in cryptocurrencies [1]

Core Viewpoint - The significant decline in major cryptocurrencies, including Bitcoin and Ethereum, is attributed to rising expectations of a hawkish shift in the Federal Reserve's monetary policy following the nomination of Kevin Walsh as the next Fed Chair [1] Group 1: Cryptocurrency Price Movements - On January 31, Bitcoin's price dropped to $77,082.48, with a maximum decline of 8.32% in the past 24 hours [1] - Ethereum's price fell to $2,354.67, experiencing a maximum decline of 12.84% in the same timeframe [1] - Other cryptocurrencies such as Solana, Dogecoin, and Binance Coin also saw significant price drops [1] Group 2: Market Sentiment and Influences - The market's anticipation of a hawkish monetary policy under Walsh has strengthened the US dollar and led to a substantial pullback in precious metals [1] - High-risk and high-volatility cryptocurrencies are facing concentrated sell-offs as they are no longer viewed as a hedge against currency depreciation but rather as speculative excess assets [1] - Marcus Tilen, founder of 10x Research, indicated that once the loose monetary policy ends, the speculative trend in cryptocurrencies is likely to recede [1]

Core Viewpoint - The prices of major cryptocurrencies, including Bitcoin and Ethereum, experienced significant declines on January 31 due to market expectations of a "hawkish" monetary policy from the Federal Reserve, following the nomination of Kevin Walsh as the next Fed Chair by President Trump [1] Cryptocurrency Market Impact - Bitcoin's price fell to $77,082.48, with a maximum decline of 8.32% in the past 24 hours [1] - Ethereum's price dropped to $2,354.67, with a maximum decline of 12.84% in the past 24 hours [1] - Other cryptocurrencies such as Solana, Dogecoin, and Binance Coin also saw substantial price drops [1] Market Sentiment and Analysis - Analysts suggest that the market's expectation of Walsh's hawkish monetary policy has led to cryptocurrencies being viewed not as a hedge against currency depreciation but rather as "over-speculative assets" [1] - The end of loose monetary policy is anticipated to lead to a retreat from speculative trading in cryptocurrencies [1]