Bitcoin Takes a Tumble: Crypto Market in a Sea of Red!

by

Markets

What to know:

  • Bitcoin, once a proud stallion, now wilts like a flower in the desert sun, dragging the market along for the ride.
  • In a tragic comedy, 85 out of the top 100 tokens are putting on their best sad faces.
  • This sell-off waltzes in despite the whispers of softer U.S. inflation data promising some sweet Fed rate cuts-oh, the irony!
  • Brace yourselves, traders; a week of macroeconomic shenanigans looms ahead, featuring Fed minutes and the core PCE inflation report-grab your popcorn!

The crypto markets are painting a lovely shade of crimson this Monday, as bitcoin spirals downwards like a soap opera star in turmoil before a week packed with economic revelations.

At the time of this little tête-à-tête, bitcoin was trading around $68,200, down nearly 3% over the last 24 hours, while XRP and ether decided to join the pity party with even bigger losses. Privacy coins, the shy folks of the coin world, like monero and zcash, are down 10% and 8%, respectively. Who knew they were such wallflowers?

Smart contract tokens are bleeding too, with the CoinDesk Smart Contract Platform Select Capped Index down nearly 6%, marking a staggering 28% drop for the year. It’s like watching a slow-motion train wreck, one that you just can’t look away from.

This market weakness feels particularly disheartening, given the backdrop of last week’s soft U.S. consumer price index data, which kept hopes for Fed rate cuts alive. CPI growth slowed to a mere 2.4% year-on-year in January from 2.7% in December. A real nail-biter, folks!

Vikram Subburaj, CEO of the India-based regulated Giottus exchange, weighed in, suggesting that selective demand is why these rallies seem to be on a perpetual coffee break.

“Risk appetite stayed selective, and macro cross-currents kept traders feeling about as defensive as a cat in a room full of rocking chairs,” he quipped in an email to CoinDesk.

Macro heavy week

A week thick with macro data is upon us, with traders poised like hawks, ready to swoop down on the minutes of the January Fed meeting and the release of the core personal consumption expenditures price index (PCE). It’s the financial equivalent of waiting for the next plot twist!

“PCE inflation will be scrutinized like a politician’s speech for signs that price pressures are easing, especially after the CPI hinted at only a slight slowdown,” remarked Dessislava Laneva, Nexo dispatch analyst, keeping her ear to the ground.

And in traditional markets, Mark Nash of Jupiter Asset Management has done a complete 180, going from yen bear to bullish, forecasting an 8-9% yen appreciation, especially against the Swiss franc. It’s like watching a weather vane spin wildly in a storm!

The yen and bitcoin have formed an unexpected alliance recently, creating a record positive correlation that might just make the bitcoin bulls prance with glee.

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2026-02-16 10:33