Bitcoin's price dropped below $80,000 over the weekend, leading to a $2.55 billion liquidation event, marking the 10th largest in crypto history, according to Wintermute. The decline was driven by disappointing earnings from the Mag7, particularly Microsoft's, which undermined AI narratives, the nomination of Kevin Warsh as Federal Reserve Chair, and a sharp correction in precious metals markets, with gold down 9% and silver plunging 26%, triggering a circuit breaker. Wintermute noted that crypto assets performed poorly, with only the S&P 500 and crude oil recording positive returns. The firm attributed the market volatility to macroeconomic uncertainties and position-driven risk aversion. Despite the current bear market, Wintermute emphasized that there is no structural collapse, with stronger infrastructure and sustained institutional interest. They anticipate a quick recovery in the latter half of 2026 as conditions improve.