BlockBeats News, February 7 — Matthew Sigel, Head of Digital Asset Research at VanEck, stated that unlike previous sharp declines driven by clear catalysts, this round of sell-off has no single trigger, making it more difficult to determine the market bottom. However, it may also create clearer conditions for recovery. Factors contributing to Bitcoin dropping below $60,000 on Thursday include leverage collapse, forced miner sell-offs, the cooling of AI hype, quantum computing threats, and the typical four-year bull-bear cycle pattern that Bitcoin investors anticipate and sell accordingly.
Massive deleveraging: Open interest in futures contracts peaked at $90 billion in early October, but has since plummeted from about $61 billion a week ago to approximately $49 billion, indicating the market has reduced over 45% of its peak leverage.
AI hype cools: Investors are beginning to question whether companies like OpenAI and cloud service providers can truly profit from their massive infrastructure investments. With the returns on hundreds of billions of dollars in infrastructure still uncertain and commercialization paths unclear, this skepticism has dealt a heavy blow to Bitcoin miners.
Quantum computing threats intensify: Interest in this topic has increased, with more active discussions among developers and community forums, although several Bitcoin core developers continue to downplay the urgency of the risk.
Four-year cycle psychological impact: Bitcoin follows a strict yet unofficial four-year cycle rhythm: halving events reduce new coin issuance, typically pushing prices higher; then investors take profits, and the market enters a bear phase. “The four-year cycle narrative remains an important reference point for investor psychology.”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin in a tug-of-war: Bulls attempt to turn the tide against bearish pressure
Bitcoin has experienced several weeks of intense volatility. Amid rising geopolitical tensions, capital is gradually flowing back into this asset, helping the price recover some of the previous losses.
At the time of writing, Bitcoin has regained the $71,000 mark after weeks of trading below
TapChiBitcoin3m ago
Data: If BTC drops below $68,903, the total long liquidation strength of mainstream CEXs will reach $1.839 billion.
ChainCatcher News, according to Coinglass data, if BTC drops below $68,903, the total long liquidation strength on major CEXs will reach $1.839 billion. Conversely, if BTC breaks through $76,001, the total short liquidation strength on major CEXs will reach $1.716 billion.
GateNews5m ago
Bitcoin and Ethereum options with a total notional value of $2.68 billion will expire on March 6.
Greeks.live release data shows that the Bitcoin and Ethereum options expiring on March 6 are 32,000 and 184,000 contracts respectively. The market rebound has pushed Bitcoin back to $70,000. Despite an increase in bullish options trading, the momentum has slowed; implied volatility has risen.
GateNews10m ago
Morgan Stanley provides a $500 million loan to Bitcoin mining company Core Scientific
Core Scientific announces a $500 million financing from Morgan Stanley, intended for infrastructure shifts toward artificial intelligence and other development expenses. The loan agreement can be increased to $1 billion.
GateNews23m ago
Nasdaq-listed company YY Group officially announces the launch of the Bitcoin Treasury Strategy
Odaily Planet Daily reports that NASDAQ-listed company YY Group has officially launched its Bitcoin Treasury Strategy, treating Bitcoin as a primary reserve asset on its balance sheet to achieve capital preservation, diversify its assets and liabilities, and fulfill its long-term shareholder value creation commitments. It is understood that the company will allocate part of its excess cash reserves to Bitcoin and hold it long-term. (Prnewswire)
GateNews24m ago
