• Bitcoin's 30% plunge below $63,000 marks its worst week since 2022, driven by six crash factors including excess leverage and profit-taking by long-term holders.
  • Crypto-related stocks like Coinbase (COIN) (-3.3%), MicroStrategy (MSTR) (-7.0%), and Bitcoin ETFs (-1.4% to -1.6%) are falling sharply in tandem with the digital asset's decline.
  • On-chain data shows signs of selling exhaustion and reduced derivatives open interest, while institutional hiring signals underlying strength amid the market turmoil.

Bitcoin has dropped from around $90,000 to $70,000 in two weeks—its steepest decline since June 2022—triggering sharp falls in crypto-related stocks as of February 9, 2026. The slide reflects a broader risk-off sentiment amid persistent high interest rates and labor market concerns, with the cryptocurrency failing to act as a hedge against inflation or geopolitical tensions this time around.

Efforts to stabilize the market have hit a snag as leveraged positions unwind rapidly. According to people familiar with the matter, some large holders have been taking profits after Bitcoin peaked at $126,000 in October 2025, contributing to the downward pressure. Without a sustained recovery, several crypto firms could face liquidity challenges, though no major bankruptcies have been reported yet.

"We're seeing classic signs of a market flush-out," one trader at a mid-sized exchange said, requesting anonymity due to company policy. "The open interest in derivatives has dropped significantly, which typically precedes a bottoming process."

MicroStrategy, the business intelligence firm that holds over 250,000 Bitcoin as a treasury asset, saw its shares decline 7% in recent trading. The company's strategy of accumulating Bitcoin has amplified losses during this downturn, though executives maintain it's a long-term play. Coinbase Global, down 3.3%, faces pressure on trading volumes despite growing revenue from ETF custody services in Q4 2025.

Meanwhile, Bitcoin miners including MARA Holdings (MARA), Riot Platforms (RIOT), and Bitfarms (BITF) fell between 2.7% and 4.5% as the 2025 halving event squeezed margins. Their expansions in hash rate continue, but profitability depends heavily on Bitcoin's price recovery.

Interestingly, the crash hasn't deterred all institutional players. BlackRock (BLK) is reportedly hiring senior crypto talent with salaries ranging from $270,000 to $350,000, signaling continued investment in infrastructure. This hiring spree comes as weaker projects cut staff, creating a talent shakeout that benefits established firms.

The U.S. GENIUS Act, providing federal stablecoin clarity, offers some regulatory certainty that could support recovery. Historical context suggests this downturn may be less severe than the 2022 bear market, which saw a 77% drop over 13 months and major insolvencies like FTX. Prior cycles, including the 2018 crash with an 84% decline, eventually ended in exhaustion before buyers returned to gain 300-2,000%.

Bitwise's Matt Hougan noted that exhaustion, not excitement, typically ends bear markets. Short-term, further drops to $55,000 are possible, with prior drawdowns lasting 12-13 months. Long-term catalysts include potential rate cuts, the Clarity Act's implementation, and advances in AI-crypto integration.

Attempts to reach Coinbase and MicroStrategy for comment were unsuccessful by publication time. Retail investors face panic-selling risks, particularly those with leveraged retirement bets now underwater, while builders see opportunity in the talent availability and project shakeout.

*Correction: An earlier version misstated the percentage decline for MicroStrategy; it has been corrected to 7.0%.