Key Takeaways
- • Bitcoin declined to $73,150 on Tuesday amid a broader stock market selloff, down 44% from its October 2025 peak near $125,000, with Ethereum falling to $2,120 and Solana dropping below $97.
- • Bitwise Chief Investment Officer Matt Hougan declared the market in "full-blown crypto winter" since January 2025, explicitly rejecting characterization as a bull market correction and comparing current conditions to the 2022 downturn.
- • Institutional investors absorbed more than 740,000 bitcoin during 2025, providing price support that masked a 60%+ decline in tokens lacking ETF or treasury demand, according to Bitwise's analysis.
- • Crypto-related equities mirrored digital asset losses, with Galaxy Digital declining 18% following earnings while Coinbase, Circle, and Bullish fell 5–7%; broader tech and private equity sectors also posted sharp losses.
- • Hougan projects crypto winters typically last 13 months, placing a potential market bottom within weeks if the January 2025 timeline holds, with the Fear and Greed Index remaining in extreme fear territory and sellers expected to deplete positions before recovery.
Summary
Bitcoin fell to $73,150 on Tuesday, February 3, 2026, as intensifying stock market pressure cascaded into digital assets. The decline represents a 44% pullback from Bitcoin's October 2025 peak near $125,000. Ethereum traded at $2,120 while Solana dropped below $97, reflecting broad-based weakness across major cryptocurrencies. The selloff was exacerbated by sharp losses in technology stocks and private equity, alongside a BlackRock TCP Capital filing that revealed a 19% asset value markdown, signaling deteriorating risk appetite across institutional portfolios.
Bitwise Chief Investment Officer Matt Hougan characterized current market conditions as a "full-blown crypto winter" that commenced in January 2025, explicitly rejecting softer characterizations. "This is not a 'bull market correction' or 'a dip,'" Hougan stated. "It is a full-bore, 2022-like crypto winter." His assessment places the bear market's starting point earlier than the October 2025 price peak, suggesting the decline's trajectory and depth exceed typical cyclical corrections.
Institutional capital flows have provided critical support during the downturn. Bitwise calculated that institutional vehicles absorbed more than 740,000 bitcoin during 2025, providing price support that obscured the severity of underlying market weakness. Without this institutional demand from ETF and treasury buyers, the decline in tokens would have exceeded 60%, according to Bitwise's analysis. This distinction underscores the role of macro-driven buying in temporarily stabilizing prices amid deteriorating sentiment.
Cryptocurrency-related equities tracked digital asset losses closely. Galaxy Digital posted an 18% decline following earnings announcements, while Coinbase, Circle, and Bullish each fell 5–7% during the session. The synchronized weakness across crypto-linked equities and digital assets reflects contagion effects and suggests tighter liquidity conditions across the sector.
Hougan projects that crypto winters typically last approximately 13 months, placing a potential market bottom within weeks if the January 2025 timeline holds. Market exhaustion rather than renewed optimism typically marks the end of such cycles, as sellers deplete positions. The Fear and Greed Index remained in extreme fear territory, consistent with capitulation dynamics that historically precede bottoms in cryptocurrency markets.
Bitwise Chief Investment Officer Matt Hougan characterized current market conditions as a "full-blown crypto winter" that commenced in January 2025, explicitly rejecting softer characterizations. "This is not a 'bull market correction' or 'a dip,'" Hougan stated. "It is a full-bore, 2022-like crypto winter." His assessment places the bear market's starting point earlier than the October 2025 price peak, suggesting the decline's trajectory and depth exceed typical cyclical corrections.
Institutional capital flows have provided critical support during the downturn. Bitwise calculated that institutional vehicles absorbed more than 740,000 bitcoin during 2025, providing price support that obscured the severity of underlying market weakness. Without this institutional demand from ETF and treasury buyers, the decline in tokens would have exceeded 60%, according to Bitwise's analysis. This distinction underscores the role of macro-driven buying in temporarily stabilizing prices amid deteriorating sentiment.
Cryptocurrency-related equities tracked digital asset losses closely. Galaxy Digital posted an 18% decline following earnings announcements, while Coinbase, Circle, and Bullish each fell 5–7% during the session. The synchronized weakness across crypto-linked equities and digital assets reflects contagion effects and suggests tighter liquidity conditions across the sector.
Hougan projects that crypto winters typically last approximately 13 months, placing a potential market bottom within weeks if the January 2025 timeline holds. Market exhaustion rather than renewed optimism typically marks the end of such cycles, as sellers deplete positions. The Fear and Greed Index remained in extreme fear territory, consistent with capitulation dynamics that historically precede bottoms in cryptocurrency markets.
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