Bitcoin fell more than 7 percent over the weekend to $77,000, and the decline has raised the possibility that it could be the bottom of the current cycle, blockchain media outlet Cointelegraph reported on Feb. 1 local time.

Analysts said the sharp drop was driven by President Donald Trump nominating former Federal Reserve governor Kevin Warsh as the next chair and by an explosion at Iran's Bandar Abbas port. The market is concerned Warsh may try to shrink the Fed's balance sheet. Uncertainty from the Bandar Abbas port blast also prompted investors to move into safe-haven assets such as gold, triggering bitcoin selling.

Bitcoin analyst PlanC said the decline could be the deepest correction within a bull market, citing steep drops during the 2018 bear market, the March 2020 crash and the selloff around the FTX and Luna episodes. He forecast the bottom would form between $75,000 and $80,000. Bitcoin supporter Rajat Soni, however, said weekend spikes and drops are not reliable and argued bitcoin will rebound at an unexpected moment.

Veteran trader Peter Brandt raised the possibility bitcoin could fall to $60,000 by the third quarter of 2026. Crypto analyst Benjamin Cowen also expected a bottom to appear in early October, but said there would be rebounds in the meantime. Jurien Timmer, Fidelity's director of global macro research, said 2026 could be a "rest period" for bitcoin and mentioned the possibility of a decline to $65,000.