Bitcoin Stuck Below $70K-Is AI or Global Trade to Blame?

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Key Highlights

  • BTC can’t break $70K, with AI chaos and trade mess reshaping markets-leaving investors in a state of cautious disbelief.
  • Deglobalization and stubborn inflation are squeezing growth assets, pushing gold, commodities, and energy up, while crypto’s wild ride continues.
  • Algorithmic selling wiped out $60B from crypto in mere hours, showing that volatility is the name of the game, with institutional interest still on vacation.

Ah, Bitcoin. The once-mighty king of cryptocurrency, now stuck stubbornly below $70,000 like a kid trying to reach the top shelf. As Wintermute so kindly pointed out in their latest market update, Bitcoin’s price has been sloshing around between $64,000 and $67,000, following a series of liquidations. It’s like watching a ship bob on the ocean-no real direction, just stuck in the waves.

In a tweet, Wintermute remarked that Bitcoin’s high-risk behavior now resembles the wild swings of altcoins. And who’s to blame? Well, it seems the AI revolution, combined with a slowdown in global trade, might just be turning the crypto world upside down in 2026.

– Wintermute (@wintermute_t) February 24, 2026

In the past, markets would jump at news like tariffs or the latest tweet from the Fed. Now? Not so much. Wintermute points out that the market seems to be shifting into an entirely new phase, where reactions are more like a collective shrug rather than a sprint to the trading desks.

It’s also worth mentioning that the Federal Reserve-once the mighty puppet master of the market-no longer has the same pull. Sluggish growth and inflation that refuses to budge mean investors are beginning to doubt the old “Fed/Trump put.” You know, the safety net that once made everyone think, “Hey, growth and tech stocks can do no wrong!” Yeah, that’s out the window now.

AI Rerating and Deglobalization: The New Market Forces

Now, let’s talk about the real culprits reshaping the landscape: AI and deglobalization. According to Wintermute, the U.S. FY25 earnings, combined with Anthropic’s model releases, have forced investors to finally face the harsh reality of AI disruption, one sector at a time.

In other words, investors are scrambling to figure out which companies are genuinely going to cash in on AI. Is it the software? The growth? Or the hardware? Seems like the easy bets on AI are over, and now it’s all about navigating the confusing, unpredictable mess of the market.

Meanwhile, deglobalization is also throwing a wrench in the gears. After the Supreme Court ruling on Section 122, tariffs are no longer a “maybe” but a permanent fixture. Supply chains are still a disaster, input costs are high, and trade and political conflicts are now a constant headache.

These trends are dragging down the value of once-high-flying global, software-heavy companies. Meanwhile, good ol’ traditional assets like gold, energy, and industrials are having a nice little party. Who would have thought, right?

Crypto Reacts with the Same Old Volatility

Bitcoin’s repeated failed attempts to break above $70K are telling us one thing: Big institutional investors are still sitting this one out. It’s like they’ve got a VIP pass but decided to grab a coffee instead.

Ethereum is also not doing any better, with its price dipping below $1,900. Support levels are now at $1,600, and derivatives are flashing caution signs. The open interest is shrinking, and the put options are hanging around like unwanted party guests.

All of this? Well, it means crypto is now firmly in the “risky growth asset” category. Just like tech stocks and momentum plays, crypto is living on the edge, and investors are paying the price. The Fed can’t save us now. But don’t get too comfy, says Wintermute. They remind us that market rotations have a funny way of bringing back that sweet risk appetite and restoring some semblance of momentum.

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2026-02-24 17:04