As of February 6, 2026, Bitcoin is in freefall. After hitting an all-time high above $126,000 in October 2025, BTC has shed roughly half its value in just a few months. On February 5 alone, the price cratered 10–17% in a single day, dipping as low as ~$60,000–$64,000 according to CoinGecko, CoinDesk, Forbes, and other trackers. This marks the lowest level since late 2024 and one of the sharpest drawdowns in recent memory — rivaling pain seen during the FTX era.

The Numbers Tell a Grim Story

• Peak to trough: ~$126,000 (Oct 2025) → ~$60k–$64k (Feb 5–6, 2026) = -50%+ drawdown.

• Market wipeout: Over $1 trillion in Bitcoin market value erased since the high; global crypto market down ~$2 trillion.

• Liquidations: More than $1 billion in forced closures in 24 hours during the worst of the sell-off.

• Comparison: Gold has soared ~70% in a similar period while BTC bled — highlighting a dramatic flight to traditional safe havens.

Why Is This Happening Now?

Despite earlier optimism around pro-crypto policies in the U.S., several forces converged:

1. Risk-off rotation — Investors dumped speculative assets (crypto, tech) amid macro headwinds: cooling jobs data, sticky inflation, stronger dollar, and uncertainty around Fed direction.

2. Leverage unwind — Thin weekend-into-week liquidity + over-leveraged longs created a cascading liquidation spiral.

3. Narrative fatigue — The "Bitcoin as digital gold" story lost steam as gold outperformed dramatically. Even strong institutional holders face paper losses in the billions.

4. No clear catalyst — Unlike past crashes tied to specific events (FTX, Luna), this feels like broad de-risking across markets.

Headlines from the past 24–48 hours capture the mood:

• Forbes: "Bitcoin Crashes To Around $60,000 As Historic Free Fall Worsens"

• CNBC / NBC: "Crypto crash accelerates as investors flee risky assets"

• The Guardian / NYT: Warnings of a new "crypto winter" despite political tailwinds

• CoinDesk / Bitcoin Magazine: $1B+ liquidations, worst day since 2022

What Should Holders / Traders Do?

This is painful, but crypto cycles have always featured deep corrections followed by recoveries. Key things to watch:

• Support levels: $58k–$60k (near 200-day MA), then potentially lower ($50k or below) if momentum stays bearish.

• Sentiment extremes: Fear & Greed Index likely in "extreme fear" territory — historically a contrarian buy zone for long-term holders.

• Macro pivot: Any signs of Fed easing, risk-on rotation, or stabilization in equities/gold could spark a relief rally.

• Don't panic-sell at lows: History shows capitulation often marks bottoms (but timing is never easy).

Bitcoin has survived worse. Whether this is a healthy reset after euphoria or the start of a prolonged bear remains unclear. One thing is certain: volatility is back with a vengeance.

Stay safe out there, manage risk, and only invest what you can afford to lose. What's your take — temporary dip or deeper trouble ahead? Drop thoughts in the comments.