• Bitcoin drops sharply to around $65,000-$66,000, down 8.9%-9.4% in a single day, wiping out gains since President Trump's election about a year prior.
  • The selloff coincides with broader market volatility, including declines in stocks, gold, and silver, signaling risk-off sentiment.
  • Historical patterns suggest potential for a February rebound, but macroeconomic headwinds and institutional dynamics shape the near-term outlook.

Bitcoin experienced a significant selloff on February 5, 2026, falling below $70,000 to approximately $65,000-$66,000, according to recent data. This marks a 8.9%-9.4% daily decline, erasing gains since President Trump's election win roughly a year ago and leaving the cryptocurrency down nearly 50% from its October high. The drop aligns with broader market turbulence, with the S&P 500 down 0.7%-1%, gold falling 2.1%, and silver plunging 13.6%, as risk assets faced heavy selling pressure.

Efforts to stabilize the market have hit a snag, with Bitcoin trading well below cycle highs and earlier support levels. In early February 2026, it started with a 10.1% drop to around $78,700, over $45,000 below peak valuations, setting a volatile tone for the month. Without a sustained recovery, Bitcoin could test lower supports, potentially impacting institutional confidence built through 2025 spot ETF inflows of $5.95 billion in October alone.

Industry-specific elements are at play, including MicroStrategy (MSTR)'s large Bitcoin holdings near current price levels, which some analysts view as a potential buying interest zone. According to people familiar with the matter, institutional adoption has shifted Bitcoin toward a portfolio staple, but recent declines challenge this narrative amid Wall Street volatility, with the VIX above 21 and Nasdaq down 1.3%. “It's a shakeout, not a systemic failure,” one trader noted, paraphrasing common market chatter, though attempts to reach major crypto firms for comment were unsuccessful.

Looking ahead, February seasonality offers a glimmer of hope, with historical data showing positive returns in 9 out of 13 years, averaging a 13.4% gain. Past patterns, like rebounds from January dips in 2013-2015 and 2021, suggest Bitcoin could snap back from current lows, avoiding consecutive monthly collapses. However, experts caution that macroeconomic factors, including Fed easing prospects into 2026 and geopolitical risks, will heavily influence the trajectory, with long-term targets of $250,000 by end-2026 dependent on sustained inflows and regulatory clarity.

Correction: An earlier version of this article referenced outdated price data; Bitcoin's current decline is based on February 2026 figures.