A leading crypto analyst has outlined several factors behind Bitcoin’s recent struggles while also pointing to potential long-term support. Post Fiat founder Alex Good, also known as ‘goodalexander,’ shared the analysis on February 3, 2026, as social sentiment around digital assets hit its lowest point in months and Bitcoin traded near nine-month lows.
Factors Driving the Downturn
Good identified eight main reasons for the current slump. The primary factor is the failure of major blockchain adoption narratives to deliver sustained value. Examples include Arbitrum’s brief surge after a Robinhood announcement, later overshadowed by the broker’s own in-house solution, and Nasdaq’s preference for private blockchains instead of public networks for trading.
Low fee capture on major layer-one protocols has also undermined confidence. Solana’s daily fees, for instance, dropped to around $1 million from previous peaks above $24 million during the “Trump coin” craze. Other factors include macroeconomic attention on equities, gold, and AI, which has diverted focus from crypto. Bitcoin has also acted as a “Trump proxy,” performing based on pro-crypto policy expectations that have not fully materialized.
Structural pressures add to the downside. Widening discounts on digital asset trusts may incentivize activist investors to sell underlying tokens, creating additional selling pressure. Social sentiment data from Santiment shows strong retail fear following Bitcoin’s 16 percent drop over the past week, marking the lowest levels since November 2025. CoinShares reports $1.7 billion in weekly outflows from digital asset products, including $1.32 billion from Bitcoin alone. Since October 2025, the sector has lost $73 billion in assets under management.
Factors That Could Support Bitcoin
Despite the sell-off, Good highlighted several potential long-term support factors. A more fragmented global order, rising debt, and the risk of wealth taxes could renew interest in fixed-supply assets. He also suggested that AI could increase unemployment rather than create jobs, which may pressure central banks to ease policy—a historically positive factor for scarce assets.
Other analysts share a cautiously optimistic view. Global Macro Investor founder Raoul Pal explained that Bitcoin’s recent decline reflects a U.S. liquidity drain from fiscal issues and government shutdowns rather than a structural market failure. Future liquidity easing could improve conditions, even if short-term momentum remains weak.
Market watchers like Daan Crypto Trades note that Bitcoin’s ability to hold the mid-$70,000 range is critical. A sustained move above $80,000 could stabilize markets, while another dip could further test investor confidence.
