Crypto Markets Tumble Amid Trump Impeachment Prospects
The cryptocurrency market is experiencing a significant downturn, with Bitcoin and Ethereum leading the losses as uncertainties surrounding former President Trump’s potential impeachment unfold. Despite the political turmoil, analysts highlight broader macroeconomic factors as the primary drivers of the market’s plunge.
Significant Declines in Major Cryptocurrencies
Bitcoin, the flagship cryptocurrency, has seen its value drop over 7% as of February 5, 2026, dipping below $70,000 for the first time since November 2024. Currently trading at approximately $67,925, Bitcoin has erased all gains achieved since Trump’s second-term election, marking a 46% fall from its all-time high of $126,210.50 recorded in October 2025. Similarly, Ethereum has decreased by 8%, trading at around $1,980, representing a 34% year-to-date decline.
Broader Market Impact
The crypto market’s downturn is not isolated. The Associated Press reports a new 15-month low for Bitcoin, with other crypto-focused firms like Coinbase and Robinhood experiencing declines of 9.1% and 8.1% respectively. Strategy, a major Bitcoin holder, has also seen its stock fall by 13%, suffering from significant unrealized losses.
Barron’s highlights a broader sell-off in tech stocks, particularly AI-related equities, contributing to the cryptocurrency market’s chaos. As investors pivot towards safer assets like gold, the sell-off in cryptocurrencies has erased an astonishing $500 billion from the global crypto market over the past week alone.
Macro Factors and Market Sentiment
Despite the political backdrop of Trump’s impeachment odds, which prediction markets like Kalshi estimate at 57%, the crypto markets seem largely detached from these developments. Analysts point out that cryptocurrencies are more influenced by macroeconomic conditions, such as the strength of the dollar and the risk-off sentiment affecting tech stocks.
Stifel strategist Barry Bannister warns of potential further declines, projecting Bitcoin may slump to $38,000, drawing parallels to historical bear markets. Meanwhile, Michael Burry argues that there is no fundamental justification for the current slowdown in Bitcoin’s decline.
Implications and Future Outlook
The current market conditions highlight the volatility and susceptibility of the cryptocurrency sector to broader economic trends. While Trump’s pro-crypto stance previously contributed to significant gains, the present environment is dominated by uncertainty and potential policy shifts.
Market participants and analysts are closely monitoring developments in both the political sphere and macroeconomic indicators. With a pessimistic outlook prevailing, the cryptocurrency market may face further challenges in the near term, potentially leading to deeper corrections as strategic holders grapple with unrealized losses.
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