NEW YORK, Feb 8, 2026, 08:49 (EST)
Bitcoin circled $71,287 early Sunday, still holding over the $70,000 line after a turbulent week. The token’s 24/7 market means both the slide and bounce have carried straight into the weekend.
It’s a big deal in D.C. these days: President Donald Trump, back in the White House, has been touting plans to turn the U.S. into the “crypto capital of the world.” Lawmakers are following suit, pushing through looser regulations for some corners of the sector. Congress signed off on legislation for stablecoins — the dollar-linked digital tokens — as the industry keeps pressing into the financial mainstream. Still, bitcoin has lost ground. After almost doubling following Trump’s November 2024 win and reaching a high close to $126,000 last October, it’s fallen to about $60,000 this week. That’s now under where it stood when Trump reclaimed the presidency. “Bitcoin is anything but safe,” said Ben Schiffrin, senior policy director at Better Markets. 1
Some traders say the market structure is exaggerating the moves. “Reduced liquidity translates into sharper and more erratic price movements,” Kaiko research analyst Thomas Probst said, citing the decline in “market depth”—basically, how much can trade at current prices without causing swings. Denny Galindo at Morgan Stanley Wealth Management noted last fall’s flash crash “popped the leverage bubble.” CoinShares’ James Butterfill thinks markets may be “very close to a bottom,” even as Jefferies’ Andrew Moss still sees “few bullish indicators.” 2
Retail investors spent the week under pressure, following a pattern they know too well. Corey Geho, who’s been in since 2015, told MarketWatch, “Volatility is the price of admission.” He keeps buying on a fixed schedule, sticking to dollar-cost averaging — spreading his purchases out. Tayleb Brooks, 27, admitted the drop “hurts a little,” but said Wall Street’s push into futures and options — contracts for betting on price — is changing bitcoin’s draw. “Wall Street has many products that don’t” actually hold coins, he pointed out. John, a 75-year-old from California, summed it up differently: “seen this movie before.” 3
Leverage remains at the heart of the mess. Borrowed money fuels the rally, but when markets dip, those same trades unwind in a hurry—forced sales kick in, and selling pressure builds as margin calls hit.
Those who’ve been through crypto’s wild swings know to stay put during the downturns. “Crypto winter” sums it up—drawn-out slumps with falling prices, vanishing liquidity, and weaker hands forced out.
Crypto’s recent slide didn’t happen in isolation—it echoed broader market nerves. U.S. stocks snapped back Friday, with the Dow breaking above 50,000 for the first time. Bitcoin, after dipping near $60,000 late Thursday, was trading north of $70,000, according to the Associated Press. The AP also pointed to a rally in crypto-adjacent names like Coinbase, Robinhood, and Strategy, tracking gains in tech. 4
Still, calling this a textbook “risk-on” move is a stretch. Things could turn quickly. With scarce liquidity, it wouldn’t take much — maybe a policy jolt, a heavyweight unloading, or fresh anxiety about rates — to send bitcoin sliding back to the shaky levels that unsettled traders this week.
Washington is leaning pro-crypto, but the shift hasn’t fully filtered through markets yet. Investors are weighing whether newly friendly policy outweighs persistent wild swings. Bitcoin’s climbed above $70,000 again. Still, anyone betting on a smooth road ahead isn’t getting it.
