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Welcome to the US Cryptocurrency News Morning Briefing – your essential summary of the most important developments in the cryptocurrency world for the day ahead.
Grab a coffee and get ready – the market has been on a roll lately. Bitcoin moves, stocks move, and stocks accelerate. While some investors pause, others watch intently, trying to read the signals beneath the noise.
Today’s Cryptocurrency News: Bitcoin Falls Below $68,000 Amid Forced Devaluation
Bitcoin has fallen below $70,000 on Thursday, before extending to levels below $68,000, an area last tested on October 28, 2024. The move came at a time when… There is a growing sale in the digital currency markets.
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This decline indicates a decline of about 45% from the highs of October, led by With ETF flowsdecrease in demand, and a phase of “forced deleveraging” in the futures markets.
“…With the decrease in demand, ETF flows decrease, and futures markets enter the phase of “forced deleveraging”. Analysts say that weak volumes and continued selling push investors to exit at a loss, despite technical indicators that indicate overselling conditions.” books Walter Deaton.
Weak trading volumes and persistent selling pressure prompted many investors to exit losing positions, even with technical indicators indicating oversold conditions.
Despite the short-term turmoil, JP Morgan has become more optimistic about Bitcoin’s long-term potential compared to gold.
The bank highlighted that Bitcoin is now trading at a much lower value Of the estimated production cost of $87,000This is a level that is historically considered a soft floor, and its volatility in relation to gold has fallen to its lowest record levels.
“… Gold’s significant performance against Bitcoin since last October, coupled with the sharp increase in gold volatility, has made Bitcoin look more attractive compared to gold over the long term,” As reported by MarketWatch About JPMorgan Quantitative Strategist Nikolaos Panigirzoglou.
According to the bank, this risk-adjusted profile indicates significant growth for investors willing to maintain the risk for several years.
Market stress indicators highlight the fragility of the current environment. Glassnode data shows that Bitcoin’s capitulation metric recorded its second largest growth in two years. This reflects strong forced selling and accelerated risk reduction by market participants.
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Meanwhile, it’s worth noting that Bitcoin has erased all gains since Donald Trump’s election victory, erasing a 78% post-election rally and highlighting ongoing volatility.
Cryptocurrency stocks decline amid Bitcoin selloff and growing economic uncertainty
Cryptocurrency stocks reflect broader weakness in Bitcoin. decrease Coinbase sharesRiot, Marathon, and Strategy were between 5% and 7% ahead of the market after falling below $70,000, and their ETF shares were up more than 5%.
The decline in cryptocurrencies comes amid broader macroeconomic headwinds. US layoffs in January rose 205% year over year to 108,435, the highest January number since 2009, according to the website Challenger, Gray & Christmas.
The job cuts were concentrated in the transport sector – led by UPS – and technology, where Amazon announced 16,000 layoffs. Health care has also seen notable declines.
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Meanwhile, federal job protections have been overhauled, as the Trump administration finalized reforms affecting 50,000 civil service employees. Continuing claims remained high at 1.84 million, highlighting ongoing economic uncertainty.
Equity markets also see a similar complex backdrop, with BMO Capital Markets forecasting the S&P 500 to reach 7,380 by the end of 2026, indicating an expected return of 8%.
The company favors cyclical sectors such as industrials, materials, energy and financials, while underperforming defensive sectors. Inflation remains a key risk, although global monetary and fiscal stimulus is providing support.
With all these things in mind, Bitcoin and investors in the financial markets more broadly strike a delicate balance:
- Oversold technical conditions and low relative volatility indicate a long-term opportunity
- However, immediate pressures from dire debt positions, ETF flows, and general uncertainty continue to weigh on sentiment.
JPMorgan’s analysis points to potential gains for patient participants, but the short-term outlook remains volatile, reflecting a market in the midst of recalibration.
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Today’s map
Alpha is a byte size
Here’s a roundup of more US cryptocurrency news to follow today:
Overview of Pre-Market Cryptocurrency Stocks
| Company | Closed until February 4th | Early market overview |
| Strategy (MSTR) | $129.09 | $120.78 (-6.58%) |
| Coinbase (COIN) | $168.62 | $159.42 (-5.46%) |
| Galaxy Digital Holdings (GLXY) | $20.16 | $19.10 (-5.26%) |
| Mara Holdings (MARA) | $8.28 | $7.81 (-5.68%) |
| RIOT Platforms | $14.14 | $13.36 (-5.51%) |
| Basic Sciences (CORZ) | $16.15 | $15.50 (-4.02%) |
