Crypto Daily | Bitcoin Falls Below $71,000; Canaccord Analysts Lowers Strategy's Target Price by 61%

Tiger Newspress02-05 13:30

Crypto Daily is our column tracking crypto market trends, offering timely insights and valuable updates to keep you informed.

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Bitcoin Falls Below $71,000 as Market Faces a “Crisis of Faith“

Bitcoin slumped below $71,000, a level last seen 15 months ago, as a broad risk-off move engulfed global markets.

The world’s largest cryptocurrency is extending a downward spiral that has seen it shed more than 42% from its peak in October last year. Bitcoin fell as low as $70,145 in Asia trading Thursday. That’s the weakest level since Nov. 6, 2024, the day after Donald Trump was re-elected US president. It had dipped to $71,739 late Wednesday in New York.

“The market is currently navigating a ‘crisis of faith,’” said Shiliang Tang, managing partner of Monarq Asset Management.

Prediction Traders Are Betting Bitcoin Will Fall Below $65,000

Bitcoin values have fallen to their lowest level since President Donald Trump took office. If prediction markets are to be believed, the world’s most popular cryptocurrency may have a lot further to fall.

Contracts on Polymarket, a decentralized prediction platform popular with crypto-native speculators, now imply an 82% chance that Bitcoin will fall to $65,000 this year, a level roughly 13% lower than today’s $73,200.

Some are betting on even worse. The odds of a sub-$55,000 finish have climbed to roughly 60%, while the odds of a rebound sending the currency back up to $100,000 have fallen to 54% from 80% at the start of the year.

Strategy Price Target Sliced Amid Bitcoin Giant's Stock Plunge

With crypto winter clearly having set in, bulls are now left looking for signs that the bearishness has become so embedded that a bottom might form.

One case in point might be a note from Canaccord's Joseph Vafi on Wednesday, slashing his price target on Strategy by a whopping 61% to $185 from $474.

Vafi, who lifted his outlook on Strategy as recently as November (to that $474 level), still maintains a buy rating on the stock, and his new $185 target suggests about 40% upside from Tuesday's close of $133.

CME Group Explores Launching Its Coin, Will Shift Crypto Fund Trading to 24/7

CME Group, owner of the world's largest derivatives exchange operator by trading volume, said it's actively considering launching its own coin and moving all of its crypto products to 24/7 trading during its Q4 earnings call on Wednesday.

CME Group Chairman and CEO Terrence Duffy was responding to a question from Morgan Stanley analyst Michael Cyprys about the factors at play in allowing traders to use stablecoins, tokenized deposit tokens, or tokenized funds as collateral.

He said the company has a tokenized cash "initiative" that's being rolled out with Google later this year. The tokenization deal with the tech giant was announced March 2025, and promised to deliver "secure wholesale payments and tokenization of assets."

Tether Scales Back Fundraising Plans Due to Investor Resistance: Report

Tether has scaled back plans for a $15-$20 billion raise after investor pushback, with advisers now discussing as little as $5 billion.

CEO Paolo Ardoino says the company is highly profitable and insiders are reluctant to sell equity, limiting how much could be raised.

The pullback reflects valuation sensitivity, regulatory uncertainty, and lingering questions around institutional legitimacy, observers told Decrypt.

Bitcoin & Ethereum Spot ETF Flow

The overall net outflow of the US Bitcoin spot ETF on Thursday was $171.5 million. The total net asset value of Bitcoin spot ETFs is $95.51 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 6.35%.

The Bitcoin spot ETF with the highest net outflow on February 5 was Fidelity Wise Origin Bitcoin Fund (FBTC), with a net outflow of $86.44 million, according to SoSoValue.

Source: SoSoValueSource: SoSoValue

The overall net outflow of the US Ethereum spot ETF on Thursday was $20.53 million. The total net asset value of Ethereum spot ETFs is $13.04 billion, and the ETF net asset ratio (market value compared to total Ethereum market value) is 4.82%.

The Ethereum spot ETF with the highest net outflow on February 5 was Fidelity Ethereum Fund (FETH), with a net outflow of $20.53 million, according to SoSoValue.

Source: SoSoValueSource: SoSoValue

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Comments

  • neo26000
    02-05 14:39
    neo26000
    Ah, the legendary “Prediction Traders” — those fearless financial oracles who somehow always know exactly where Bitcoin is headed… except when it’s soaring past 100k and apparently “too early to call it.” Now, suddenly, the stars have aligned, the tea leaves are readable, and Bitcoin dipping below 65k is apparently their brilliant forecast. Must be exhilarating to cash in on what basically everyone can see coming. Laughing all the way to the bank… if the bank hasn’t already locked the doors from all those missed early calls. Honestly, it’s like showing up to a party after it’s over and proudly announcing you knew it would be fun — pure genius.
  • Margaritas
    02-05 14:31
    Margaritas
    Fed chair w history of not printing money - OFC btc will drop - Trump seems determined to destroy the middle class and their retirement funds
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