Btc Retreats as Tariff-Linked Flash Crash and Deep Year‑to‑Date Losses Fuel Crypto Winter Fears
Bitcoin has continued to struggle in a turbulent market, and the keyword btc is front and center as investors parse a string of losses and a tariff-linked liquidation event that many say marks a new Crypto Winter. The slump arrives even after modest gains on Friday, underlining a fragile, uneven start to the year.
Btc price and the worst start of the year
Bitcoin is down almost 24% from Jan. 1 to around $67, 000, while Ethereum has fallen about 34% to roughly $2, 000. Those are the worst year‑to‑date performances on record when measured against public price data that extends back to mid‑2013 for Bitcoin and mid‑2014 for Ethereum. The monthslong decline has left many market participants confused and searching for a durable explanation.
Year‑to‑date divergence from equities and metals
Cryptocurrencies often move with broader equities, but that relationship has broken down over the past two months. Since January, the S&P 500 has nudged upward by about 0. 4% and the Dow Jones has risen about 2. 3%. At the same time, metals have outperformed: gold has climbed about 17% and silver about 14% to start the year. That divergence has fed talk of a Crypto Winter despite Bitcoin having hit all‑time highs just months earlier.
Flash crash, tariff threats and the liquidation shock
A one‑day implosion on Oct. 10 followed a fresh round of tariff threats from President Donald Trump aimed at China; that event saw more than $19 billion in leveraged positions wiped out. The October session has been described as the worst liquidation event ever tracked by analytics firm CoinGlass. Bitcoin is down more than 46% since early October, a slide that continues to weigh on sentiment.
Exchanges, lenders and the ripple effects
The industry has shown signs of strain. Major exchanges like Coinbase and Gemini recorded poor fourth‑quarter results, and some traders remain deeply in the red. BlockFills, a crypto lender and hedge fund, suspended customer withdrawals earlier in February, is now looking for a buyer, and has losses of more than $75 million. A spokesperson for BlockFills declined to comment.
Sentiment: Crypto Winter and cautious optimism from analysts
Many observers have labeled the environment a Crypto Winter. Danny Nelson, a research analyst at crypto asset manager Bitwise, characterized the market as such and pointed to muted investor responses to positive developments as evidence. At the same time, Nelson said he sees structural strengthening in the industry and suggested changes could outlast the current downturn. Tom Lee, cofounder of analysis firm Fundstrat and a noted Ethereum booster, expressed optimism that the market may be nearing a turning point, saying it is "really close to the end. "
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What comes next
The recent losses and the October liquidation event have created a complex backdrop: the lack of a single, obvious catalyst has left analysts divided between seeing a deeper adjustment and expecting a rebound as industry fundamentals evolve. The tension between worsening prices and growing institutional acceptance among U. S. regulators and Wall Street keeps the outlook unsettled. Ben Weiss, a crypto reporter, has been covering these developments as the market grapples with both structural shifts and acute stress points.
Key figures at a glance:
- Bitcoin: down almost 24% YTD, around $67, 000
- Ethereum: down about 34%, around $2, 000
- S&P 500: up about 0. 4% YTD
- Dow Jones: up about 2. 3% YTD
- Gold: up about 17% YTD; Silver: up about 14% YTD
- Oct. 10 liquidation: more than $19 billion in leverage evaporated
- Bitcoin since early October: down more than 46%
- BlockFills: suspended withdrawals earlier in February; seeking buyer; losses over $75 million
Details remain fluid and market participants should expect evolving headlines as the industry digests the tariff‑linked shock, lingering liquidations and a broader reassessment of risk.
