Since bitcoin surged above $126,000 back in late 2025, it has sunk more than 45% as investors have broadly moved away from riskier assets over the past few months. Recently, the nomination of Kevin Warsh as Federal Reserve president pushed cryptocurrencies further down based on expectations that he could be more hawkish on rates. When rates are expected to stay higher, investors often pull money from riskier assets like cryptocurrencies. Of course, investors should be mindful that large price moves, both up and down, have been common for bitcoin and other cryptocurrencies.
Source: Fidelity.com, as of February 5, 2026. Past performance is no guarantee of future results.