Bitcoin crashes to $65,000: Market freezes while searching for a bottom
On February 5, 2026, a wave of panic selling swept through the crypto market, with Bitcoin at its epicenter. The leading digital currency’s value crashed to the $65,000 mark, marking a 24-hour decline of more than 11%.
Highlights
- Bitcoin plummeted to $65,000, losing nearly 48% of its value from historic peak of $126,000.
- Massive trader liquidations of $775 million and record ETF outflows have plunged market into state of extreme fear.
- Analysts suggest further decline toward $40,000 is possible, despite "HODLers" maintaining faith in long-term recovery.
This incident served as a painful reminder of the asset's inherent volatility, as current prices now represent barely half of the all-time high of $126,000+ recorded last October. Intra-day lows around $65,700 confirm the severity of the correction, which has effectively wiped out a year's worth of gains for many investors.
Trader capitulation and institutional outflow
The rapid price drop triggered a domino effect across trading platforms, sparking a cascade of forced liquidations on margin positions totaling up to $775 million. The situation is further exacerbated by a massive exodus of institutional capital, with spot ETFs losing approximately $1.5 billion in just one week. Consequently, the industry’s total market capitalization has shrunk by hundreds of billions of dollars, while the Fear and Greed Index has predictably shifted into the "Extreme Fear" zone.Macroeconomic storm and crisis of faith
The analytical community attributes the current collapse to a combination of factors, primary among them being large-scale deleveraging—a purging of excess market leverage following a prolonged rally. Additional pressure is coming from global weakness in risk-on assets, including the technology sector and the silver market. Amidst macroeconomic turbulence, Bitcoin has temporarily lost its "safe haven" narrative, forcing many market participants to reassess their capital protection strategies.Foggy outlook and historical optimism
The outlook for future price movement remains uncertain. While the $60,000 zone acts as immediate support, experts from CoinShares and CryptoQuant do not rule out a drop into the $40,000–$55,000 range in a worst-case scenario. Notably, on the Polymarket platform, investors had priced in an 80%+ probability of prices falling below current levels even before the crash began.Nevertheless, long-term holders remain calm, pointing to previous market cycles where the asset consistently hit new highs following deep corrections.
We previously reported that Bitcoin fell below $67,000 amidst outflows from spot ETFs.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
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