Crypto Markets Under Pressure: Bitcoin Nurses Four-Week Losing Streak

The digital asset market is currently navigating a period of significant structural weakness, with Bitcoin (BTC) struggling to maintain its footing near the $68,400 mark. This recent price action represents more than just a standard correction; it marks a four-week losing streak for the world’s largest cryptocurrency, the longest such decline since the depths of the 2018 bear market. As Ethereum (ETH) similarly languishes below the $2,000 threshold, the broader crypto ecosystem is grappling with a combination of profit-taking, hawkish monetary policy, and a cooling sentiment that has already erased over $1 trillion in total market capitalization over a six-week period.

The primary driver of this downturn appears to be a shift in the macroeconomic landscape. In late 2025, the Federal Reserve’s hawkish rhetoric regarding persistent inflation triggered a massive wave of liquidations, totaling approximately $400 million in a single day. This event shattered the momentum that had briefly pushed Bitcoin toward the $85,000 level in December. Since then, the correlation between cryptocurrencies and Big Tech stocks has tightened, with digital assets often leading the downward charge when the Nasdaq faces pressure. This 'risk-off' environment has been exacerbated by fears that the tech sector may be entering a bubble phase, prompting institutional investors to trim their exposure to high-beta assets.

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While Bitcoin briefly dipped below $61,000 in early February, the current stabilization near $68,000 suggests a temporary equilibrium.

Corporate performance within the sector has further dampened investor enthusiasm. Coinbase, a bellwether for the industry, recently reported a staggering $667 million loss for the fourth quarter. This financial result highlights the challenges of maintaining profitability in a high-volatility, lower-volume environment. Publicly traded crypto-adjacent companies like MicroStrategy have seen their valuations hit as their balance sheets, heavily weighted toward Bitcoin, reflect the underlying asset's depreciation. The market is no longer rewarding pure exposure; instead, it is scrutinizing the sustainability of business models that rely on ever-increasing token prices.

From a technical perspective, the market remains on edge. While Bitcoin briefly dipped below $61,000 in early February, the current stabilization near $68,000 suggests a temporary equilibrium. However, analysts warn that sentiment remains 'weak.' The historical precedent of the 2018 bear market looms large, where extended losing streaks often preceded deeper, multi-month drawdowns. For Ethereum, the failure to hold the $2,000 level is psychologically significant, potentially opening the door for further tests of support in the $1,800 range if the current 'mild profit-taking' evolves into a more aggressive sell-off.

Looking ahead, the market's trajectory will likely be dictated by upcoming inflation data and the Federal Reserve's next move. If interest rates remain elevated for longer than anticipated, the cost of capital will continue to weigh on speculative assets. Investors should watch for a decoupling of crypto from traditional tech stocks as a sign of market maturity, though in the short term, the two remain inextricably linked. For now, the 'weekend rallies' that previously characterized the bull market appear to be met with immediate Monday morning sell-offs, suggesting that the path of least resistance remains to the downside until a significant fundamental catalyst emerges.