• Bitcoin's price tumbled sharply on February 5, 2026, dropping around 11% to levels between $64,000 and $67,000, marking a 15-month low and extending a months-long slide from its October 2025 peak of $126,210.
  • The decline, part of a 40-46% retracement from all-time highs, saw Bitcoin briefly dip below $64,000 and close down 11.5% at $64,328, amid broader crypto market pressures, with over $2.56 billion in positions liquidated in 24 hours.
  • A strengthening U.S. dollar and tighter monetary policy expectations, tied to Trump's nomination of Kevin Warsh as Fed chair, pressured non-yielding assets like Bitcoin, coinciding with risk-off trends in equities and a 40% drop in crypto trading volumes.

Bitcoin continued its downward trajectory Thursday, hitting $67,245 by mid-morning EST after an 11% daily drop, with analysts noting bearish technicals like RSI at 21 (oversold) and MACD crossovers. Over $2.56 billion in positions were liquidated in 24 hours, intensified by $545 million ETF outflows on Wednesday, pushing weekly flows negative and total crypto market cap to $2.5 trillion (down 20% YTD). Trading volume hit 55 billion, with prices near $74,800 later but still -5% daily.

Efforts to stabilize the market have hit a snag, as a strengthening U.S. dollar and tighter monetary policy expectations, tied to Trump's nomination of Kevin Warsh as Fed chair, pressured non-yielding assets like Bitcoin. This coincided with risk-off trends in equities, tech (e.g., Alphabet drag), precious metals (silver, gold drops), and a 40% drop in crypto trading volumes. Broader market cap fell from $3 trillion peak; DeFi TVL grew 37.3% QoQ via tokenized assets, but ETF outflows signal fragile sentiment, according to market watchers.

Post-2024 Trump election, Bitcoin rallied on crypto-friendly hopes, but policy dialogue (e.g., Digital Asset Market Clarity Act) slowed without price stabilization. Warsh's Fed nomination forecasts tighter conditions, amplifying dollar strength and reducing Bitcoin appeal despite industry engagement, sources familiar with the matter said. Crypto firms and investors faced heavy losses: Coinbase (COIN) -9.1%, Robinhood (HOOD) -8.1%, Riot Platforms (RIOT) -10%, Strategy (ex-MicroStrategy) -13% with 713,502 BTC holdings underwater (worth $47.8B vs. $54.3B cost). Galaxy Digital (GLXY) reported $482M Q4 2025 loss from price drops and volume declines. American Bitcoin (ABTC) (Trump sons' stake) down 80%+ since October; retail/institutional caution persists, with 94% ETF assets held despite redemptions sparking bearish debates.

Bitcoin peaked at $126,210 on October 6, 2025, post-Trump win, but entered a "crypto winter" since early 2025, mirroring 2018/2022 bears where positives didn't halt declines (e.g., 2022 bottom at $20,000). Bitwise CIO calls it a genuine winter masked by 744,000 BTC institutional buys ($75B demand), averting 60% deeper drawdown; Crypto Fear & Greed near all-time fear. Current path echoes past capitulation-to-accumulation shifts near historical supports. Short-term: Analysts eye $64,000-$73,072 support; breach risks $60,000 floor amid dead-cat bounce warnings and risk-off trends. Long-term: Potential exhaustion-end to winter like prior cycles; Compass Point sees bear market end if equities weaken further, with low long-term holder supply above $70,000 signaling undervaluation. Cautious stance advised, monitoring equity correlation and yields.

Thicker buy orders cluster $64,000-$71,500, suggesting not unusual pullback. Institutional resilience (e.g., ETF holds) contrasts gold's 65% 2025 gains; parallels tech/equity sell-offs. No company-specific (Bitcoin is decentralized asset); Strategy/Galaxy highlight treasury/mining vulnerabilities. Attempts to reach key industry figures for comment were unsuccessful as of press time.