• CONTACT
  • MARKETCAP
  • BLOG
Coin Mela Coin Mela
  • Home
  • News
    • All News
    • Bitcoin
    • Ethereum
    • XRP
    • Altcoins
    • NFT
    • Blockchain
    • Web3
    • DeFi
    • Finance
    • Stocks
    • Company
  • Learn
  • Market
  • Advertise
Reading: Bitcoin Price Decline: Key Factors Behind the Drop and Potential for Recovery
Share
  • bitcoinBitcoin(BTC)$73,408.00
  • ethereumEthereum(ETH)$2,159.54
  • tetherTether(USDT)$1.00
  • binancecoinBNB(BNB)$708.81
  • rippleXRP(XRP)$1.53
  • usd-coinUSDC(USDC)$1.00
  • solanaSolana(SOL)$92.58
  • tronTRON(TRX)$0.283224
  • staked-etherLido Staked Ether(STETH)$2,260.93
  • dogecoinDogecoin(DOGE)$0.103938
CoinMelaCoinMela
Font ResizerAa
  • Home
  • News
  • Learn
  • Market
  • Advertise
Search
  • Home
  • News
    • All News
    • Bitcoin
    • Ethereum
    • XRP
    • Altcoins
    • NFT
    • Blockchain
    • Web3
    • DeFi
    • Finance
    • Stocks
    • Company
  • Learn
  • Market
  • Advertise
Have an existing account? Sign In
Follow US
© Coin Mela Network. All Rights Reserved.
Bitcoin

Bitcoin Price Decline: Key Factors Behind the Drop and Potential for Recovery

News Desk
Last updated: February 4, 2026 8:21 pm
News Desk
Published: February 4, 2026
Share
urlhttps3A2F2Fg.foolcdn.com2Feditorial2Fimages2F8510462Fa bitcoin on a screen.jpgw1200op

Bitcoin, the leading cryptocurrency, has experienced a significant price drop, plunging nearly 20% year to date. This decline has erased its gains following the 2024 presidential election victory of Donald Trump on November 5. Experts are analyzing the factors behind Bitcoin’s current struggles and pondering its potential to rebound to $100,000 later this year.

Previously, Bitcoin had faced setbacks during 2022 and 2023, when rising interest rates drove investors toward safer investment options. However, a recovery was observed in 2024 and 2025, attributed to the approval of the first spot-price exchange-traded funds (ETFs), the recent halving event—which reduces mining rewards—and a series of interest rate cuts by the Federal Reserve. During this period, Bitcoin also gained traction as legal tender in several countries, saw an influx of institutional investments in its new ETFs, and witnessed growing interest in “Bitcoin Treasuries.”

Despite this growth narrative, 2024 has presented fewer immediate catalysts for Bitcoin. Uncertainty surrounds whether the Federal Reserve will persist with aggressive rate cuts. Trump’s nomination of Kevin Warsh, known for previously favoring rate hikes, as the next Fed Chair introduces additional ambiguity. Although Warsh has aligned himself with the Trump administration’s push for lower rates, the exact direction he will take upon assuming office remains to be seen.

As a result of this uncertainty, many investors are cashing in on their Bitcoin profits and shifting towards more stable assets like gold and silver. The price decline has also triggered leveraged liquidations, exacerbating the downward pressure on Bitcoin. Currently, Bitcoin’s price stands at approximately $73,615 with a market cap of $1.5 trillion and a notable trading volume of $74 billion.

Despite the current scenario, there are reasons to believe that Bitcoin could bounce back to its previous heights. One potential catalyst is Warsh adopting a dovish approach regarding inflation, leading to aggressive interest rate cuts. This could weaken the U.S. dollar, prompting a shift towards riskier assets like Bitcoin as investors seek a hedge against inflation.

Another promising development is the recent drafting of a comprehensive regulatory framework for the cryptocurrency market by U.S. senators. If this legislation is enacted, it would delineate which cryptocurrencies are classified as commodities, transferring regulatory oversight from the Securities and Exchange Commission (SEC) to the more crypto-friendly Commodity Futures Trading Commission (CFTC). Such regulatory clarity could entice more institutional investors to enhance their Bitcoin holdings through spot-price ETFs.

As Bitcoin’s price begins to recover, it is likely to spark renewed interest among investors, with the fear of missing out (FOMO) potentially driving its value beyond the $100,000 mark once again.

Larry Fink Calls Bitcoin “An Asset of Fear” at DealBook Summit
Bitcoin Whitepaper Celebrates 17 Years Amid Evolving Mainstream Adoption and Ongoing Controversies
Bitcoin Faces Bearish Pressure as Support Levels Weaken
Evansville City Council Approves Ordinance to Combat Rising Bitcoin ATM Scams
Harvard and Emory Universities Expand Bitcoin ETF Holdings Amid Market Volatility
Share This Article
Facebook Whatsapp Whatsapp
ByNews Desk
Follow:
CoinMela News Desk brings you the latest updates, insights, and in-depth coverage from the world of cryptocurrencies, blockchain, and digital finance.
Previous Article Chainlink Chainlink Price Analysis: $10.20 Critical Resistance as Market Shows Divergent Trends
Next Article ChatGPT Image Jun 8 2025 04 51 56 PM Important Disclaimers and Risk Information for FXEmpire Users
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News
cfe162fef73d2e018d93ed311c178bb6
Mercury Systems’ Stock Plummets 23.1% Despite Beating Q4 Earnings Expectations
8c4f7ce0 015a 11f1 bf57 f2d3372d7171
US stocks mostly decline amid tech selloff and mixed earnings results
ChatGPT Image Jun 8 2025 04 51 56 PM
Important Disclaimers and Risk Information for FXEmpire Users
- Advertisement -
Ad image

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Youtube Telegram Linkedin
Coin Mela Coin Mela
CoinMela is your one-stop destination for everything Crypto, Web3, and DeFi news.
  • About Us
  • Contact Us
  • Corrections
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • Advertise with Us
  • Quick Links
  • Finance
  • News
  • Company
  • Stocks
  • Bitcoin
  • XRP
  • Ethereum
  • Altcoins
  • Blockchain
  • DeFi
© Coin Mela Network. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?