Wintermute Says Crypto Remains in Bear Phase as Bitcoin Breaks Below $80,000

Wintermute stated on Feb. 3 that Bitcoin fell below $80,000 for the first time since the April 2025 Trump tariff event, with crypto liquidations over the weekend reaching $2.55 billion, the tenth-largest on record, BlockBeats reports. The firm cited several macro drivers including weaker-than-expected earnings from U.S. "Mag7" stocks that hit the AI narrative, the surprise nomination of Kevin Warsh as Federal Reserve Chair, and a sharp pullback in precious metals where silver plunged as much as 26% intraday and triggered a CME circuit breaker. Wintermute noted that BTC broke down after two months of ranging between $85,000 and $95,000, with thin weekend liquidity and elevated leverage intensifying selling, and said crypto assets are currently the weakest performers among risk assets, indicating the market is still in a bear phase. The firm added that unlike prior structural crises linked to FTX or Luna, this drawdown has been driven more by macro and positioning factors without signs of systemic contagion, and suggested that if macro uncertainty eases and the monetary policy path becomes clearer in the second half of 2026, overall sentiment and capital interest could recover relatively quickly.