Bitcoin has slipped back below the $68,000 mark, casting doubt on a previous rally that saw the cryptocurrency briefly exceed $70,000. During a brief attempt to regain this level on Monday, selling pressure emerged, dragging the price back towards $67,000. As of early Wednesday, Bitcoin was hovering around $68,000, remaining largely flat for the day but now positioned beneath what had been a key area of support.
This shift in the $68,000–$70,000 range is significant as it had previously acted as a floor during the first half of February. Its loss heightens the risk that any upward movements could be met with selling rather than buying interest. Should Bitcoin break below $67,000, it could see prices move toward $65,000 and even $60,000 in subsequent trading.
Other major cryptocurrencies, including Ethereum and BNB, have also experienced declines of around 3% over the past week. Conversely, smaller tokens such as Zcash (ZEC) and Cosmos (ATOM) have enjoyed gains of up to 20% in the same timeframe. Historical trends indicate that struggles among major cryptocurrencies often lead to difficulties for smaller assets to maintain upward momentum. Alex Kuptsikevich, the chief market analyst at FxPro, commented on this situation, highlighting that the downturn in large-cap coins could spell trouble for smaller alternatives as well, potentially accelerating a market-wide pullback.
On-chain analysts from CryptoQuant suggest that the market has entered a phase of stress. However, they note that the type of significant loss realization typical of a definitive cycle bottom has not yet occurred, indicating that the current unwinding may not be over.
Adding to the uncertainty in the crypto space, discussions surrounding quantum computing have resurfaced, raising concerns for investors about long-term cryptographic risks. While several developers assert that significant threats would emerge only decades from now, the subject remains a focal point for many.
In a separate development, Adam Back, CEO of Blockstream, criticized a proposed update known as BIP-110, which aims to reduce network spam. Back argued that the changes could introduce new reputational risks by altering the accepted guidelines for transactions.
Institutional interest appears to be shifting as well. Notably, Harvard’s endowment fund reduced its exposure to bitcoin ETFs by more than 20% in the fourth quarter, although it still retains its position as the largest public crypto investment for the fund.
In contrast to the struggles in the cryptocurrency market, Asian equities have shown some resilience, with the MSCI Asia Pacific Index climbing 0.6%, buoyed by gains in Japan. Meanwhile, U.S. futures have edged higher following recent turbulence related to AI trends.
For Bitcoin, the ongoing technical battle remains crucial. A successful reclaim of the $70,000 level could reset momentum positively, while another failure to break through this threshold might lead the market to anticipate a more extensive retracement.
