Bitcoin Fails to Reclaim $70,000 amid U.S. Regulatory Tensions
This week, two key U.S. indicators will be closely watched: fourth-quarter GDP and, more importantly, the December PCE index.
Quick overview
- The cryptocurrency market is experiencing broad declines, with Bitcoin trading below $70,000 and Ethereum falling below $2,000.
- Despite positive macroeconomic data from the U.S., including a stronger labor market and easing inflation, the Crypto Fear & Greed Index indicates 'extreme fear' among investors.
- Regulatory uncertainty surrounding the Clarity Act is adding to the unease in the crypto ecosystem, with Coinbase expressing criticism of the proposal.
- Coinbase reported its first negative earnings since 2023, with only its stablecoin-related business remaining profitable amid market corrections.
The unease across the crypto ecosystem stands in sharp contrast to the strong macroeconomic data released in the United States late last week—raising the question of what the sector is actually paying attention to.
Broad-based declines continue across the cryptocurrency market, with Bitcoin (BTC) trading comfortably below the $70,000 level at the start of the week—a pattern mirrored across most major altcoins.
BTC is down 0.7% over the past 24 hours, slipping to $68,500, while Ethereum (ETH) is falling more than 1.6%, breaking below the $2,000 mark.
Altcoins show a similar picture: Binance Coin (BNB), Solana (SOL), Cardano (ADA), and Chainlink (LINK) are posting declines in line with the two largest cryptocurrencies. The only exceptions are Tron and Bitcoin Cash, which are showing modest gains of around 0.4%–0.5%, respectively.
Meanwhile, the Crypto Fear & Greed Index continues to signal “extreme fear,” hovering at levels comparable to those seen during the collapse of the FTX exchange in late 2022.
Macroeconomic Data in Focus
This negative sentiment contrasts with the positive macroeconomic signals released in the U.S. at the end of last week. First, the January jobs report showed a labor market stronger than expected. Second, inflation data revealed that headline inflation slowed to 2.4% in January, while core inflation eased to its lowest level since 2021.
This week, two key U.S. indicators will be closely watched: fourth-quarter GDP and, more importantly, the December Personal Consumption Expenditures (PCE) deflator—the inflation gauge preferred by the Federal Reserve for guiding monetary policy.
In addition, the minutes from the Fed’s latest meeting will be released on Wednesday, potentially offering further insight into how the central bank views the outlook for the world’s largest economy.
Regulatory Uncertainty and the “Clarity” Issue
Another source of uncertainty for the crypto ecosystem is the lack of clarity surrounding the Clarity Act, a legislative proposal aimed at defining the regulatory framework for stablecoins in the U.S. The bill has become a point of contention within the industry itself, with Coinbase emerging as one of its main critics.
In fact, the exchange reported its first negative earnings result since 2023 at the end of last week, following the sharp market correction in late 2025. Notably, the only segment that remained profitable was the stablecoin-related business—ironically the area that would be most negatively impacted if the Clarity Act were approved.
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