Bitcoin’s Meltdown: Is It Time to Panic or Just Another Crypto Hangover?

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Markets

What to know (or maybe just ignore and go shopping):

  • Tuesday’s crypto selloff is like that friend who shows up late to the party, drunk, and ruins everything. Stocks are down, crypto is down, and even your barista looks worried.
  • AI stocks, software, and private equity are taking a nosedive. Turns out, the economy might not be the Instagram-filtered dream we thought it was.
  • Bitwise’s Matt Hougan says this isn’t just a correction-it’s a full-blown crypto winter. Grab your puffer jacket and a hot cocoa, folks.

Crypto’s Tuesday has gone from “meh” to “oh no” faster than you can say “blockchain.” The tech sector and financials are having a collective meltdown, and Bitcoin is leading the pity party.

Bitcoin has dropped 5% to $75,000, which is basically just a few hundred dollars above its weekend low. Ethereum is down 6.5% to $2,200, and Solana has slipped below $100 like it’s trying to avoid eye contact. Awkward.

Meanwhile, Shopify, Adobe, Salesforce, and Intuit are having a worse day than you did after that third glass of wine last Friday. They’re down 7%-12%, because apparently, no one wants to buy anything anymore. The iShares Expanded Tech-Software ETF (IGV) is down 5% today, and it’s lost 14% in a week. Ouch.

Private equity giants like Blackstone, Ares Capital, KKR, and Apollo are also taking a beating, down 6%-10%. Turns out, even the big boys can’t escape the drama. A BlackRock private debt fund marked down its assets by 19%, which is basically the financial equivalent of a breakup text.

Bitcoin wasn’t exactly thriving before this, but it wasn’t sobbing into a pillow either. It hit $91,000 earlier this month, but since then, it’s been a one-way ticket to Sadville. Digital asset stocks are following suit, with Galaxy leading the losses at 18% down. Coinbase, Circle, and Bullish are also crying into their ledgers, down 5%-7%.

Crypto winter: Because who doesn’t love a good existential crisis?

Matt Hougan from Bitwise says this isn’t just a dip-it’s a full-on crypto winter, complete with frostbite and despair. “This is not a ‘bull market correction’ or ‘a dip,’” he said. “It’s a Leonardo-DiCaprio-in-The-Revenant-style crypto winter.” So, basically, we’re all being chased by a bear market while freezing to death.

But hey, there’s a silver lining! Hougan says these downturns usually last about 13 months, and if we count from January 2025, we’re almost at the end. So, just a few more weeks of existential dread and then… maybe a little sunshine? Or at least a less icy wind.

“As a veteran of multiple crypto winters, I can tell you that the end feels a lot like now: despair, desperation, and malaise,” Hougan wrote. So, if you’re feeling like you’ve been left out in the cold, just remember: you’re not alone. Now, who wants to start a support group?

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2026-02-03 21:37