Bitcoinโs price fell over 7% to approximately $70,530 on February 5, 2026, marking a 15-month low due to sluggish data and unchanged U.S. policies.
This downturn highlights ongoing market recalibrations, with significant investor impacts and potential long-term implications for the crypto landscape.
Bitcoin prices have fallen to a 15-month low at roughly $70,530, largely due to tightened liquidity and weakened on-chain data. Economic measures, including the U.S. governmentโs rejection of bailout plans, have contributed to the decrease.
U.S. Treasury Secretary Scott Bessent rejected proposals to bail out Bitcoin, signaling a cautious governmental stance. Scott Bessent said, โThe U.S. government will not require private banks to purchase Bitcoin as a bailout during a market downturn.โ The unchanged interest rates by the Federal Reserve further exacerbated the slump, intensifying Bitcoinโs ongoing decline.
Crypto Market Loses $2 Trillion Amid Bitcoin Decline
The Bitcoin price decline has affected other cryptocurrencies, with Ethereum also down by 5.4%. The crypto market lost substantial value, exhibiting a $2 trillion drop from its peak, highlighting widespread investor concern.
Experts suggest a prolonged impact without a clear recovery in sight. Some analysts, including Peter Brandt, categorize the selling pattern as campaign-driven rather than retail panic, indicating a strategic pullback. Peter Brandt noted, โBitcoinโs eight-day pattern of lower highs and lower lows carried all the fingerprints of campaign selling, not retail liquidation.โ
Current Downturn Echoes 2025-2026 Crypto Winter Pattern
This drop resembles previous market downturns, such as the โcrypto winterโ of 2025-2026. The pattern of lower highs and lower lows observed now echoes past bearish phases.
Analysts from Kanalcoin emphasize the significance of historical cycles in predicting future trends. They point to market patterns suggesting this downturn might persist but could signal an impending recovery as the market stabilizes. More comprehensive insights are discussed in the Kobeissi Letter.
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