{"id":40882,"date":"2026-02-05T19:44:12","date_gmt":"2026-02-05T19:44:12","guid":{"rendered":"https:\/\/financialrush.com\/?p=40882"},"modified":"2026-02-05T19:44:12","modified_gmt":"2026-02-05T19:44:12","slug":"bitcoins-selloff-pushes-price-below-70000-what-to-know","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=40882","title":{"rendered":"Bitcoin&#8217;s selloff pushes price below $70,000. What to know"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108261918\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Ekaterina Goncharova | Moment | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Crypto prices have declined sharply in recent weeks \u2014 and some analysts warn of more pain ahead for investors. <\/p>\n<p>The price for <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/BTC.CM=\/\">bitcoin<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, the most popular cryptocurrency, <a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/bitcoin-price-today-70000-in-focus.html\">sank below $67,000<\/a> on Thursday, touching its lowest level in more than a year. Analysts had been watching $70,000 as a key psychological threshold below which prices were likely to break further. <\/p>\n<p>The digital asset has fallen nearly 50% from its recent high in October, when bitcoin peaked around $126,000. Bitcoin was down about 10% during trading on Thursday as of 1:30 p.m. E.T.<\/p>\n<p>Barry Bannister, chief equity strategist at Stifel, wrote in a research note Wednesday that bitcoin could ultimately bottom out around $38,000 \u2014 down about 70%. <\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108261593\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108261593\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000402898\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>He said he reached that conclusion based on trends and price moves during past &#8220;bitcoin super-bears,&#8221; or periods of steep downturns. <\/p>\n<p>&#8220;This is not a &#8216;bull market correction&#8217; or &#8216;a dip,'&#8221; Matt Hougan, chief investment officer at Bitwise Asset Management, a crypto money manager, <a href=\"https:\/\/experts.bitwiseinvestments.com\/cio-memos\/the-depths-of-crypto-winter\" target=\"_blank\">wrote<\/a> in a note Monday. <\/p>\n<p>&#8220;It is a full-bore, 2022-like, Leonardo-DiCaprio-in-The-Revenant-style crypto winter \u2014 set into motion by factors ranging from excess leverage to widespread profit-taking by OGs,&#8221; Hougan wrote. OGs refer to early investors in bitcoin. <\/p>\n<\/div>\n<h2 id=\"crypto-sell-off-comes-amid-broad-support-by-trump\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>Crypto sell-off comes amid broad support by Trump<\/h2>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108112980\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>US President Donald Trump speaks during a the White House Crypto Summit in Washington, DC, March 7, 2025.\u00a0<\/p>\n<p>Jim Watson | AFP | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The crypto sell-off comes amid broad support for cryptocurrency by President Donald Trump and his administration. <\/p>\n<p>Trump promised to make the U.S. a &#8220;<a href=\"https:\/\/apnews.com\/article\/donald-trump-bitcoin-cryptocurrency-stockpile-6f1314f5e99bbf47cc3ee6fc6178588d?utm_source=copy&amp;utm_medium=share\" target=\"_blank\">bitcoin superpower<\/a>&#8221; while on the campaign trail, and said he wants to make the U.S. the &#8220;<a href=\"https:\/\/www.whitehouse.gov\/crypto\/\" target=\"_blank\">crypto capital of the world<\/a>.&#8221; Trump signed an executive order within days of taking office to promote digital assets, and the White House and U.S. regulators have pursued supportive policies.<\/p>\n<p>Bitcoin ETFs <a href=\"https:\/\/www.cnbc.com\/2024\/01\/11\/bitcoin-etfs-begin-trading-on-us-exchanges-posting-gains-on-first-day-as-crypto-prices-rise.html\">began trading on U.S. stock exchanges<\/a> about two years ago, <a href=\"https:\/\/www.cnbc.com\/2026\/01\/09\/blackrocks-bull-case-for-bitcoin-access-among-retail-investors.html\">making it easier<\/a> for investors to buy and sell crypto. <\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"read-more-cnbc-personal-finance-coverage\" class=\"RelatedContent-header\">Read more CNBC personal finance coverage<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>So, why have crypto prices dropped in recent weeks and months?<\/p>\n<p>Because &#8220;good news doesn&#8217;t matter&#8221; In the &#8220;depths&#8221; of a crypto winter, as seen in 2018 and 2022, for example, according to Hougan.<\/p>\n<p>&#8220;We&#8217;re not going to rally because Wall Street is hiring aggressively or Morgan Stanley is ramping up on crypto,&#8221; he wrote. &#8220;That will matter in the long term, but not now. Crypto winters don&#8217;t end in excitement; they end in exhaustion.&#8221;<\/p>\n<\/div>\n<h2 id=\"contributors-to-the-crypto-winter\" class=\"ArticleBody-subtitle\"><a id=\"headline1\"\/>Contributors to the crypto winter<\/h2>\n<div class=\"group\">\n<p>The current one started in January 2025, he said. <\/p>\n<p>However, it wasn&#8217;t readily evident at the time due to enthusiasm among institutional investors for digital assets \u2014 which &#8220;papered over&#8221; a &#8220;brutal winter&#8221; among retail investors, according to Hougan.<\/p>\n<p>Analysts point to other contributors, too. <\/p>\n<p>For example, &#8220;credit stress has risen in the tech sector&#8221; since mid-2025, dragging down prices for bitcoin, which are seen as a &#8220;speculative tech-stock-like instrument,&#8221; according to Stifel&#8217;s Bannister.<\/p>\n<\/div>\n<div class=\"group\">\n<p>Bitcoin has also been selling off amid a <a href=\"https:\/\/www.cnbc.com\/2026\/02\/04\/stock-market-today-live-updates.html\">broader pullback<\/a> in growth stocks and amid &#8220;<a href=\"https:\/\/www.cnbc.com\/2025\/12\/09\/the-fed-decision-is-expected-to-feature-a-rate-cut-and-a-lot-more-heres-what-to-expect.html\">hawkish<\/a>&#8221; interest rate cuts by the Federal Reserve, Bannister wrote. <\/p>\n<p>&#8220;Hawkish cuts&#8221; \u2014 meaning the central bank cut interest rates while <a href=\"https:\/\/www.cnbc.com\/2025\/12\/10\/cnbc-daily-open-a-hawkish-cut-by-the-fed-could-dull-festivities.html\">suggesting it could be a while before it cuts again<\/a> \u2014 are &#8220;ominous&#8221; for bitcoin, which, similar to stocks in the Nasdaq 100, tends to move higher with &#8220;dovish&#8221; policy, Bannister wrote. Dovish policy aims for lower interest rates to promote economic growth and employment.<\/p>\n<p>Crypto winters typically last about 13 months \u2014 meaning the current one may end soon, according to Hougan. <\/p>\n<p>&#8220;What could cause the clouds to dissipate? Strong economic growth that sparks an aggressive risk-on rally, a positive surprise on the <a href=\"https:\/\/www.cnbc.com\/2026\/01\/11\/crypto-lawmakers-are-preparing-to-try-again-on-major-bill-what-can-happen-next.html\">Clarity Act<\/a>, signs of sovereign adoption for bitcoin, or just the passage of time,&#8221; he wrote. <\/p>\n<\/div>\n<h2 id=\"dont-hold-more-than-5-in-crypto\" class=\"ArticleBody-subtitle\"><a id=\"headline2\"\/>Don&#8217;t hold more than 5% in crypto<\/h2>\n<div class=\"group\">\n<p>For investors, the price decline makes it important to do a gut check about bitcoin and crypto, experts say.<\/p>\n<p>Generally speaking, bitcoin is a volatile asset \u2014 meaning gains can be big, but so can losses. Financial advisors typically recommend that bitcoin and other digital assets be limited to a very small share of your portfolio.<\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108261524\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108261524\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000402901\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108261540-260204_cw_thumbnail_2.jpg?v=1770233766&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Bitcoin faces selling pressure as investors rotate out of risk-on assets: CNBC Crypto World\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>&#8220;To me, no one should hold more than 5% in any concentrated asset,&#8221; said certified financial planner Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida, and a member of the <a href=\"https:\/\/www.cnbc.com\/advisor-council\/\">CNBC Financial Advisor Council<\/a>.<\/p>\n<p>However, even with a small stake in crypto, you should &#8220;have a process for investing and understanding when to buy and sell,&#8221; said Ivory Johnson, CFP, founder of Delancey Wealth Management in Washington, D.C., who is also a member of the Council. He said he sold client holdings when the price was about $80,000, which still netted gains.<\/p>\n<\/div>\n<h2 id=\"crypto-decline-a-buying-opportunity\" class=\"ArticleBody-subtitle\"><a id=\"headline3\"\/>Crypto decline a &#8216;buying opportunity&#8217;?<\/h2>\n<div class=\"group\">\n<p>As with any investment, you should know why you own cryptocurrency.<\/p>\n<p>&#8220;In my opinion, if you&#8217;re optimistic about bitcoin long-term, then [this drop] is a buying opportunity,&#8221; said Barry Glassman, CFP, founder and president of Glassman Wealth Services in Vienna, Virginia, who also serves on the CNBC Financial Advisors Council. <\/p>\n<p>He does not invest client assets in bitcoin, but said about half of his clients have exposure through either a brokerage account or crypto wallet.<\/p>\n<\/div>\n<blockquote data-test=\"Pullquote\">\n<div class=\"Pullquote-pullquote\" style=\"border-top-color:#002f6c\">\n<div>\n<p>It is a full-bore, 2022-like, Leonardo-DiCaprio-in-The-Revenant-style crypto winter.<\/p>\n<div class=\"Pullquote-sourceWrapper\">\n<p>Matt Hougan<\/p>\n<p>chief investment officer at Bitwise Asset Management<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n<div class=\"group\">\n<p>Glassman also pointed out that bitcoin has had huge drops before. In November 2022, for instance, it was trading at about $16,360 after hitting $65,500 a year earlier \u2014 a 75% drop.\u00a0<\/p>\n<p>On the other hand, if you bought bitcoin at a higher price than it is now, &#8220;ask yourself, &#8216;Would I buy bitcoin today?'&#8221; McClanahan said.<\/p>\n<p>&#8220;If you can&#8217;t say to yourself that yes, you&#8217;d buy today, then you should probably sell your holdings,&#8221; she said.<\/p>\n<\/div>\n<h2 id=\"tax-considerations\" class=\"ArticleBody-subtitle\"><a id=\"headline4\"\/>Tax considerations<\/h2>\n<div class=\"group\">\n<p>If you do sell bitcoin at a lower price than when you purchased, you can use those losses to offset gains you earn from other investments and rebalance your portfolio \u2014 so-called <a href=\"https:\/\/www.cnbc.com\/2023\/12\/19\/3-year-end-investment-tax-tips-from-top-ranked-financial-advisors.html\">tax-loss harvesting<\/a>.\u00a0<\/p>\n<p>Also, be aware of the <a href=\"https:\/\/www.cnbc.com\/2022\/07\/05\/how-investors-can-avoid-violating-wash-sale-rules-when-realizing-tax-losses.html\">wash-sale rule<\/a>, which disallows the loss if you buy the same or substantially identical investment within 30 days. <\/p>\n<p>If you own bitcoin directly, it is not subject to the rule: You\u00a0could\u00a0sell and then\u00a0quickly rebuy\u00a0and still\u00a0realize<strong> <\/strong>the losses. However, if you own bitcoin through an ETF, any losses at sale are subject to the rule \u2014 so you&#8217;d have to wait at least 30 days to repurchase.<\/p>\n<p>Also, if your losses exceed your gains for the year, you can use up to $3,000 of the loss to offset other income on your tax return, McClanahan said. Any leftover loss carries forward to future tax years.<\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2026\/02\/05\/bitcoin-prices-crypto-crash-selloff-investors.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Ekaterina Goncharova | Moment | Getty Images Crypto prices have declined sharply in recent weeks \u2014 and some&hellip;\n","protected":false},"author":3,"featured_media":40883,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-40882","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40882"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/40882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/40883"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}