Why Bitcoin Is Struggling: 8 Factors Impacting Crypto Markets
A outstanding crypto analyst has detailed a listing of things driving the present market downturn whereas additionally outlining longer-term causes for optimism.
The evaluation, shared by Post Fiat founder Alex Good, also called ‘goodalexander’ on February 3, 2026, comes as digital asset markets face their most bearish social sentiment in months and Bitcoin trades close to nine-month lows.
Dissecting the Current Downturn
The trade observer presented eight bearish elements for the present droop, with the first cause being the failure of main blockchain integration narratives to generate sustained worth.
Examples embody Arbitrum’s transient rally on a Robinhood announcement that later resulted in an in-house answer from the dealer and Nasdaq’s use of personal blockchains for on-chain buying and selling as an alternative of public ones.
The analyst famous that actual charge seize for main layer-1 protocols has been low, with Solana’s each day charges falling to round $1 million from peaks above $24 million in the course of the “Trump coin” frenzy.
Other elements embody a macroeconomic give attention to worldwide equities, gold, and AI, which has drawn consideration away from crypto. Good additionally steered that the market has acted as a “Trump proxy,” performing effectively on pro-crypto coverage expectations that haven’t totally materialized.
Furthermore, the skilled pointed to structural market pressures, suggesting that if reductions on digital asset trusts (DATs) widen, activist buyers may very well be incentivized to promote the underlying tokens, creating extra downward stress.
Data helps this bearish view. According to market intelligence supplier Santiment, “FUD has taken over social media” following Bitcoin’s 16% drop over the previous week, with the agency calling it essentially the most destructive retail sentiment since November 2025.
Investment flows have additionally mirrored the gloom, contemplating knowledge from CoinShares showed a $1.7 billion weekly outflow from digital asset funding merchandise, with Bitcoin alone seeing $1.32 billion exit. Additionally, since hitting highs in October 2025, the sector has misplaced $73 billion in belongings below administration.
What Could Still Support Crypto Longer Term
Despite the sell-off, Good stated there are nonetheless causes for cautious optimism. He pointed to a extra fragmented international order, rising debt, and the danger of wealth taxes as elements that would renew curiosity in fixed-supply belongings.
He additionally argued that synthetic intelligence could result in greater unemployment somewhat than job creation, rising stress on central banks to ease coverage, which has traditionally benefited scarce belongings.
Other analysts have echoed the concept the cycle is strained somewhat than damaged. On February 2, Global Macro Investor founder Raoul Pal said Bitcoin’s decline displays a U.S. liquidity drain tied to fiscal mechanics and a authorities shutdown, not a failed market construction. He argued that easing liquidity later within the 12 months might change circumstances, although near-term momentum stays weak.
However, as issues stand, merchants might want to monitor if Bitcoin can keep its stability within the mid-$70,000 vary. According to market watchers like Daan Crypto Trades, a sustained transfer again above $80,000 might calm markets, whereas one other break decrease would probably take a look at sentiment once more.
The submit Why Bitcoin Is Struggling: 8 Factors Impacting Crypto Markets appeared first on CryptoPotato.
