Bitcoinโs value has dropped below $73,000, reaching approximately $72,900 during a significant market selloff amid a broader economic contraction, marking a notable decline since 2024.
The event highlights the volatility of cryptocurrency markets, driven by U.S. monetary policy and heightened liquidation levels, affecting institutional stakeholders, including Galaxy Digital and MicroStrategy.
Bitcoin prices have dropped below $73,000, reaching a new low as the crypto market experiences a significant selloff. The decline extends to the broader crypto market, with forced liquidations of over $2.56 billion in 24 hours.
Key players in this scenario include institutional firms such as Galaxy Digital and MicroStrategy. The Federal Reserveโs potential shifts in monetary policy, influenced by regulatory changes, further exacerbate the situation in the market.
Galaxy Digital Faces $482M Q4 Loss
Institutional losses are evident with Galaxy Digital reporting a $482 million deficit in Q4 2025 due to declining digital asset prices. Michael Novogratz, Founder/CEO of Galaxy Digital, stated, โOur recent losses reflect the declining digital asset prices and the strain on trading volumes.โ The broader crypto market remains under pressure as BTC and other assets continue to face selloff challenges.
Financial and regulatory outcomes are likely to be profound. The ongoing U.S. Federal Reserve policy nomination suggests tighter financial conditions, pressuring non-yielding assets like Bitcoin. Market analysts draw parallels to historical bear markets faced by cryptocurrency.
Comparing Todayโs Decline to Past Crypto Winters
The price decline mirrors past โcrypto winters,โ notably from 2018 and 2022, where bearish sentiment remained despite some positive developments. Institutional buying has somewhat cushioned against a sharper decline, reflecting historical patterns.
Experts from Kanalcoin note the significance of institutional flows in sustaining market levels. Analysis of crypto winters suggests a potential for recovery, but the current environment remains challenging, amplified by tighter monetary policies. Matt Hougan, CIO of Bitwise, observed, โThe market entered a genuine crypto winter since early 2025, with institutional flows preventing a steeper drop.โ
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