According to CoinGecko data, since January 29, the cryptocurrency market has experienced a sharp decline. On February 3, the price of Bitcoin fell to its lowest levels since November 2024, when Donald Trump was re-elected, and the new administration began actively supporting the crypto industry.
The initial volatility led to mass liquidations of risky positions in the derivatives markets; losses in Bitcoin alone exceeded $2.5 billion, which intensified pressure on securities.
This decline has heightened doubts about whether Bitcoin can be considered "digital gold," a safe-haven asset in times of economic instability.
Instead, the cryptocurrency has demonstrated a high correlation with risky assets and has been subject to mass sell-offs due to deteriorating investor sentiment.
Investor Michael Burry emphasized that Bitcoin is still perceived as a speculative instrument, failing to act as a reliable hedge that traditional safe-haven assets like gold could offer.
Major players in the crypto market have also faced the consequences of the decline: for example, Galaxy Digital reported significant losses for the quarter amid falling digital asset prices.
Experts warn that the market may remain volatile in the coming weeks, and its recovery will depend on external economic factors and the sentiment of institutional investors.
