Btc down sharply as Crypto Winter deepens after Oct. 10 flash crash
btc is down almost 24% from Jan. 1 to now around $67, 000, and Ethereum has tumbled about 34% to roughly $2, 000, marking the worst year-to-date starts on record for the two largest cryptocurrencies, an analysis of CoinGecko public data cited in the provided context.
Btc slumps: worst start to the year in a decade
The analysis in the provided context says Bitcoin’s decline of almost 24% from Jan. 1 and Ethereum’s roughly 34% drop represent the worst YTD performances in the datasets, with CoinGecko’s public data stretching back to mid-2013 for Bitcoin and mid-2014 for Ethereum. The context also notes that Bitcoin had notched all-time highs just four months earlier.
Flash crash on Oct. 10 followed a tariff threat
Market turmoil accelerated on Oct. 10, when a one-day “flash crash” erased more than $19 billion in leverage after President Donald Trump issued another set of tariff threats against China. CoinGlass tracked that one-day implosion as the worst liquidation event ever, and the provided context says Bitcoin is down more than 46% since early October.
Markets diverge: stocks and metals move higher while crypto falls
The provided context highlights a divergence over the past two months: since January the S&P 500 has risen about 0. 4% and the Dow Jones about 2. 3%, while precious metals climbed sharply — gold up about 17% and silver up about 14% to start the year.
Exchanges, lenders and market reactions
The downturn has strained parts of the crypto ecosystem. The context says crypto exchanges like Coinbase and Gemini reported poor results for their fourth quarters. BlockFills, described in the context as a crypto lender and hedge fund, suspended customer withdrawals earlier in February, is looking for a buyer and has losses of more than $75 million as cited by CoinDesk. A spokesperson for BlockFills declined to comment in the provided context.
Sentiment: ‘Crypto Winter’ and cautious optimism
Many in the industry have labelled the stretch a “Crypto Winter. ” Danny Nelson, a research analyst at crypto asset manager Bitwise, is quoted in the provided context saying, “We’re certainly in a Crypto Winter. ” The context includes his observation that investors do not react to good news, noted parenthetically as “(They don’t. ). ” At the same time, the context records more bullish takes: Nelson is quoted again saying, “Crypto’s reality is getting stronger, ” and Tom Lee, cofounder of analysis firm Fundstrat and described in the context as a noted Ethereum booster, is quoted saying, “We’re really close to the end. ”
Broader picture and past collapses
The provided context points out that previous crypto bear markets followed explicit collapses such as the fall of FTX in November 2022. It also stresses that there has been no single obvious catalyst for the recent downturn, even as the context notes unprecedented acceptance of the industry among U. S. regulators and increasing interest from Wall Street. The context says the monthslong decline has left many in crypto confused and that some traders are deep in the red.
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The provided context names Ben Weiss as the crypto reporter who filed the piece in that context. Unclear in the provided context what the next scheduled market milestone, regulatory action or specific launch date is for major industry participants.
