On February 5, 2026, Bitcoin trades near $70,000. While this seems high, just four months earlier the coin had reached a historic peak of $126,000. In autumn 2025, analysts projected continued rises to $200,000, $300,000, or even $500,000, though others warned of an impending correction.
This correction arrived: within months, Bitcoin lost over 40% of its value. Withdrawals from US-based Bitcoin ETFs totaled over $12 billion in three months, mainly driven by major market players and hedge funds. Deutsche Bank analysts noted that investors are returning to gold, the very asset that cryptocurrencies once aimed to replace.
A key trigger was the US monetary policy shift: Kevin Warsh, the new Fed chair and a known Bitcoin supporter, began tightening policy and reducing systemic liquidity. This makes safe-haven assets and gold more attractive. For the first time, Bitcoin’s performance raises questions about its independence from traditional finance.
Meanwhile, gold prices hit new highs due to geopolitical instability and global distrust in the dollar. Bitcoin now mirrors other financial markets: it rises with liquidity, falls with equity selloffs, and responds to fear and news cycles.
In summary, cryptocurrencies maintain long-term potential, but generational shifts among investors and a move towards traditional safe assets influence price action. Investors are urged to remain prudent and to treat Bitcoin as a financial asset, not a unique exception.
