Bitcoin’s failure to rally along with gold since its October flash crash has dented bitcoin’s reputation as an emerging safe haven, with traders all but giving up on bitcoin and crypto more broadly until U.S. president Donald Trump’s new pick for Federal Reserve chair Kevin Warsh gets his feet under the desk.

Bitcoin has lost nearly half its value since a high last year, intensifying fears about just how vulnerable crypto can be when investors flee risk.

When the crypto market began crashing after hitting an all-time high (ATH) of $126,000 in October last year, he warned that Bitcoin will crash to $26,000. But he also reassured his followers that the crash will be followed by BTC hitting another ATH.

Michael Burry, whose work spotting the global financial crisis in 2008 was featured in The Big Short, is warning of the consequences of a Bitcoin crash

Traders on X are pointing to everything from a Hong Kong fund blowup to yen funding stress and even quantum security fears as bitcoin’s plunge turns into a full-blown narrative vacuum.

Robinhood Markets (NASDAQ: HOOD) opened with a slide of 2.68% at $78.46 as investors awaited the firm’s fourth quarter and full-year 2025 earnings on Feb. 10. Robinhood is a U.S. fintech firm offering commission-free stock, options, and crypto trading through its mobile app.

Treasury secretary Scott Bessent said he doesn’t have the power to bail out Bitcoin. During a House Financial Services Committee hearing yesterday, Treasury Secretary Scott Bessent said he could not ask that banks prop up Bitcoin in the case of a crash. Crypto investors are responsible for their own risk.

Just to give you an update before we even get into forecasts or fundamentals, Bitcoin (BTC) is trading around $65,000 right now. In mid-January, Bitcoin was hovering near $75,000. Since then, it hasn’t fallen off a cliff;

Bitcoin is acting weird. The world’s most famous cryptocurrency has tumbled 44% from its October peak, falling below $70,000 Thursday for the first time in 15 months.

While it has rebounded to trade at around $65,000 this morning, bitcoin has lost nearly half of its value in over four months, after it reached a record high of $122,000 in October.