Stocks associated with the cryptocurrency sector continued to experience significant declines as Bitcoin fell by 6%, dipping below the $84,000 mark on Thursday. This downward trend extends into the larger market, with Coinbase (COIN), the leading publicly traded crypto firm by market capitalization, reporting a 7% drop today, bringing its year-to-date decline to 17%. If current trends persist, it is set to mark its eighth consecutive losing session, the longest streak since September 2024. Currently priced at $195, Coinbase’s stock has reverted to levels last seen in May 2025.
Gemini (GEMI), another prominent crypto exchange, is also feeling the pressure, having lost 8% on Thursday and down 21% overall this year. Similarly, crypto platforms Bullish (BLSH) and Circle (CRCL) have reported year-to-date declines of 16% and 20%, respectively. Analysts have noted that the current situation is exacerbated by lower trading volumes across exchanges, which have plummeted as the bear market endures. According to data from TheTie, spot trading volume in January stood at just $900 billion, a stark decrease from the $1.7 trillion recorded during the same period last year.
Market sentiments remain cautious, particularly as Bitcoin hovers around the $85,000 mark. Eric He, Community Angel Officer and Risk Control Adviser at crypto exchange LBank, commented on the prevailing market hesitation, attributing it partly to rising geopolitical tensions. “Investors are staying cautious, and that’s showing up across assets, not just crypto,” he explained. He further emphasized that while traditional stocks and commodities are seeing upward movement, the crypto market appears to be in a “wait-and-see phase.”
As February approaches, analysts are keeping a close eye on potential indicators for a resurgence in trading volumes, a decrease in geopolitical tensions, and general macroeconomic data that could shift sentiment toward a more risk-on approach.
In contrast, some segments of the crypto industry are finding opportunities amidst the turmoil. Companies that have pivoted away from traditional crypto activities—particularly bitcoin miners utilizing their energy and computing capabilities to capitalize on the demands of the artificial intelligence boom—are faring relatively well. Although they faced significant sell-offs on Thursday, companies like Hut 8 (HUT), IREN (IREN), CleanSpark (CLSK), and Cipher Mining (CIFR) have managed to maintain year-to-date gains.
Another notable performer is Galaxy Digital (GLXY), led by Mike Novogratz. While the company also saw declines on Thursday, it has posted strong gains in 2026, thanks in part to its recent expansion into data centers, having obtained approval from Texas’s grid operator ERCOT for further development in the state.
