Bitcoin plummeted below $67,000 on Thursday, marking its lowest level in 15 months and erasing the gains it had accumulated since the U.S. Presidential election in November 2024. The sharp decline, representing an 11% drop in a single day, accelerated a week-long sell-off that has seen the cryptocurrency lose 46% of its value from its record high of $126,210.50 on October 6, 2025. As of 10:30 a.m. EST Thursday, Bitcoin was trading at $67,245.
The cryptocurrency market experienced a broad retreat, with Bitcoin acting as a primary drag on sentiment. This downturn is testing the confidence of both institutional investors and new retail participants who entered the market near its peak. The plunge below $70,000 signals a potential shift towards a “crypto winter,” a period of prolonged market downturn, as positive news has failed to spur price increases and traditional price drivers like dollar debasement are not currently effective.
Market Sell-Off and Contributing Factors
The cryptocurrency market’s decline is occurring within a broader context of global market volatility and a risk-off sentiment. Technology stocks have faced significant selling pressure, reducing investor appetite for risk assets. This broader market mood has directly impacted cryptocurrency prices, with Bitcoin falling as much as 8% on Thursday and trading near $71,000 early in the day. Some analysts attribute the current downturn to strong U.S. Purchasing Managers’ Index (PMI) data, which exceeded expectations and raised concerns about prolonged tight liquidity.
The cryptocurrency market plunged for the third consecutive session on Thursday, February 5, 2026. Bitcoin dropped 3.5% to test $70,000, its lowest level since November 2024, before recovering slightly to $71,340. This marked a decisive break below a target range of $74,000 previously discussed by analysts. The price action indicates a bearish trend, with potential further downside targets around $68,000, where the 200-week exponential moving average is located, and an ultra-bearish target around $52,000 if that level fails to hold.
Impact on Crypto-Related Companies and Investments
The sharp decline in Bitcoin’s price has had a significant impact on companies heavily invested in the cryptocurrency. Strategy (formerly MicroStrategy), a major corporate holder of Bitcoin, has seen its substantial holdings fall into an unrealized loss exceeding $4.1 billion. The company’s stock has dropped to a 16-month low, reflecting concerns over its leveraged approach to cryptocurrency accumulation, even as it continues to acquire Bitcoin. Strategy’s average acquisition price for its Bitcoin holdings is reportedly above $76,000, meaning the company is currently underwater on its investment.
Companies that facilitate cryptocurrency trading have also been hit hard. Coinbase Global experienced a 9.1% decline in its stock price, while online trading platform Robinhood Markets lost 8.1%. Bitcoin mining companies have also faced significant downturns, with Riot Platforms dropping 10%. Even companies pivoting towards high-performance computing and AI infrastructure have not been immune, with HUT 8 falling 8%, Core Scientific nearly 9%, and IREN plunging 17%.
Liquidation and Investor Behavior
The recent crash has triggered a massive liquidation event, with approximately $775 million in leveraged positions being liquidated across major exchanges. This cascade of liquidations caught leverage traders off guard, following a week where open interest had ballooned due to retail FOMO and aggressive perpetual positioning. The market saw over $800 million in leveraged liquidations impacting around 165,000 traders, predominantly from long positions. This event follows a previous large liquidation on February 1, which saw $2.2 billion liquidated in 24 hours.
Some analysts suggest that a significant portion of the current crash was driven by the mass liquidation of “USDe loop lending” strategies. This strategy, widely promoted and used in fundraising, experienced extreme stress during market turmoil, leading to a redemption run that rapidly devalued collateral and triggered chain liquidations.
Historical Context and Future Outlook
The current decline has brought Bitcoin’s price back to levels seen before the U.S. Presidential election in November 2024. After President Donald Trump’s election in November 2024, Bitcoin prices had generally trended higher for about a year, partly due to investor expectations of a more crypto-friendly administration.
While some analysts believe the current sell-off is a reset, others are concerned about the potential for a deeper crash, drawing parallels to past four-year cycles that saw declines of up to 80%. However, analysts at K33 argue that the current market structure differs from previous crashes, suggesting that an 80% collapse is unlikely due to the absence of systemic failures and the entrenchment of institutional buyers. The market sentiment remains complex, with some indicators suggesting a period of active re-accumulation, including renewed inflows into U.S. spot ETFs and decreased selling by large holders.
