Bitcoin slid back into the $70,000 neighborhood for the first time since November 2024, hitting a 14‑month low as the largest crypto’s fortunes increasingly tracked weakness in U.S. tech stocks. The drop accelerated midweek after U.S. spot BTC ETFs recorded roughly $544 million in daily outflows on February 4, while tech benchmarks softened — the iShares Expanded Tech‑Software ETF fell about 1.8% and the Nasdaq slipped 1.5%, pulling Bitcoin down nearly 3% that day. “As a touted ‘open‑source software,’ Bitcoin’s extended correction alongside the iShares Expanded Tech‑Software ETF was not so surprising,” Matthew Siggel, VanEck’s head of digital assets research, observed. (Source: Google Finance) Grayscale pins the sell‑off on two main frictions: slow progress on the CLARITY Act and investor anxiety over quantum‑computing risks. While smart‑contract chains such as Ethereum and Solana have already outlined post‑quantum roadmaps, Grayscale said Bitcoin’s more divided developer and investor community may be amplifying fears that future quantum breakthroughs could threaten blockchain security. “It’s natural for investors to want to understand quantum risk before allocating capital,” Grayscale said, adding that the debate around quantum readiness may be deterring some capital allocation in the short term. Still, the firm remained constructive over the medium to long term: “In our view, crypto will see net new capital inflows when uncertainty about U.S. legislation and quantum readiness abates.” Analysts at on‑chain research firm Nansen echoed that view in comments to AMBCrypto, noting that momentum on the CLARITY Act could help stabilize the market. Options market flow painted a cautionary near‑term picture for bulls. Deribit flagged elevated put skew and persistent option demand for downside protection — signals consistent with ongoing hedging and bearish positioning. “BTC option flows suggesting downside plays not over. Rolling down of protection/bear plays and fresh downside action, combined with steep put skew and firm IV, are a manifestation of the unknown depth of D1 selling,” the firm said. When Deribit published its analysis, BTC was trading near $76,000; it later fell to a new yearly low of $70,100 before recovering slightly to $71,800 at press time. Options activity showed notable put buying clustered around the $70K, $65K and $60K strikes, implying some participants were braced for a move below $70K. (Source: Deribit/Amberdata) Not everyone expects a freefall. Bitfinex noted aggressive whale accumulation during the dip, a pattern that could support consolidation or a rebound around current levels. (Source: MacroMicro/Bitfinex) Bottom line: market participants are watching two dynamics closely — U.S. legislative clarity and the industry’s approach to quantum‑resilience. Progress on the CLARITY Act or clearer signals on quantum preparedness could draw sidelined capital back in, but short‑term technicals and options activity suggest downside risk remains until those uncertainties ease. Disclaimer: This article is informational only and not investment advice. Cryptocurrency trading carries high risk; do your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news