Crypto Market Sees Steep Declines, Bitcoin Hits 15-Month Low
February 5, 2026, marks a significant downturn in the cryptocurrency sector, as Bitcoin (BTC) and other major digital assets plunge to multi-month lows. This decline reflects the growing apprehension among investors as macroeconomic uncertainties and market dynamics exert downward pressure on crypto valuations.
Bitcoin and Ethereum Lead the Decline
Bitcoin fell below $70,000 for the first time since November 2024, hitting a 15-month low at $66,727, a stark 46% drop from its all-time high in October 2025. Ethereum (ETH) also faced a substantial drop, falling 8% to $1,962, marking a 34% decrease year-to-date. The sharp declines in these major cryptocurrencies have erased the gains from the so-called ‘Trump rally’ and impacted confidence in the digital asset market.
Broader Market Impact and Sentiment
The overall cryptocurrency market capitalization has been slashed by approximately $500 billion this week, with Bitcoin and Ethereum leading the declines. The selloff has influenced a broad range of crypto-related stocks and firms, including major players like Coinbase and Riot Platforms.
Investor sentiment has significantly weakened, exacerbated by a selloff in tech stocks and increased interest in traditional safe havens like precious metals. The market’s risk appetite has diminished, prompting a ‘capitulation mode’ as described by analysts at Business Insider, with fears that Bitcoin could reach as low as $38,000.
Technical and Market Analysis
Real-time market data shows Bitcoin trading at $66,727, down roughly 7.7% intraday, with Ethereum trading at $1,962.99, down approximately 7.1%. Analysts warn of further potential declines, with near-term support expected around $57,000 to $58,000 for Bitcoin. However, a deeper correction could see levels drop further to $38,000, as indicated by experts from Coinreporter and other financial outlets.
Institutional and Market Dynamics
The outflow from U.S. spot Bitcoin ETFs amounted to $544.9 million, while Ethereum ETFs saw losses of $79.5 million. This institutional withdrawal underscores the broader market’s cautious stance, as companies like Strategy and BitMine confront significant unrealized losses in their crypto holdings.
Future Outlook and Recovery Prospects
Despite the current bearish trend, some analysts maintain an optimistic long-term view. Bernstein, for instance, predicts a possible stabilization of Bitcoin at around $60,000 later in 2026, driven by evolving institutional interest and potential policy shifts. This perspective suggests a potential rebound from the current crisis mode, although it remains contingent on broader economic conditions and market stabilizers.
The ongoing market turmoil highlights the volatility and risk inherent in cryptocurrency investments, reminding stakeholders of the necessity for strategic risk management and diversification in their portfolios.
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