According to data from CoinGecko, a sharp decline in the total market capitalization of all cryptocurrencies has been observed since January 29. On February 3, Bitcoin reached its lowest values, confirming the deterioration of its position.
This sharp drop in price triggered mass liquidations in the derivatives markets, with Bitcoin liquidations exceeding $2.5 billion, further exacerbating the situation with quotes.
The decline in prices raises doubts about Bitcoin's ability to serve as "digital gold" — a safe-haven asset in times of economic instability.
On the contrary, it has demonstrated a close correlation with risk assets and has undergone mass sell-offs amid worsening sentiment among investors.
Investor Michael Burry emphasized that Bitcoin remains a speculative instrument and has not proven effective as a hedging tool comparable to traditional safe-haven assets like gold.
Moreover, major players in the crypto market have also felt the impact of this decline: for example, Galaxy Digital reported significant losses for the reporting quarter due to the drop in the value of digital assets.
Experts warn of the potential duration of the current volatility in the market, adding that recovery will depend on external economic factors and the sentiment of institutional investors.
