BANGKOK – Bitcoin has taken a hard hit, falling to about $63,000 to $65,000 in recent sessions. That puts it at its lowest point since late 2024 and wipes out close to half of its value from the record high above $126,000 set in October 2025.
On Thursday alone, the Bitcoin price dropped more than 13%, with an intraday low near $62,303. The move set off broad liquidations and brought back talk of a long slump for crypto markets.
The sell-off follows months of choppy trading after Bitcoin’s big 2025 run. That rally gained speed with pro-crypto signals tied to policies under the Trump administration. Bitcoin pushed above $100,000 in late 2024 and later topped out at $126,210.50 on October 6, 2025, based on Coinbase data.
Many investors pitched it as “digital gold,” betting that large firms and friendlier rules would keep demand strong. So far, 2026 has gone the other way. Bitcoin is down about 20% year-to-date and more than 45% from its recent peak.
Analysts blame a mix of drivers. Institutional buying, which helped support prices through spot Bitcoin ETFs, has cooled fast. CryptoQuant reports that U.S. exchange-traded funds, once net buyers of tens of thousands of Bitcoin, have shifted to net selling this year.
At the same time, leveraged trades have been forced out. As positions closed, sell orders piled up and pushed the drop even further.
Macro pressure has added to the downside. Worries about a change in Federal Reserve policy, including talk of a smaller balance sheet under possible new leadership, have hit risk assets. Bitcoin has moved in step with weak tech stocks and other high-beta trades as investors pull back from higher-risk bets. Geopolitical stress and doubts about AI stock prices have also weighed on sentiment.
What Set Off the Bitcoin Price Drop
Selling picked up in January and got worse this week. On February 2, Bitcoin traded around $77,000 to $79,000. By February 5, it broke major levels, first $70,000, then $64,000. Volume jumped as well. One-day trading topped $120 billion on large exchanges, a sign of fear-driven selling rather than a calm reset.
CoinDesk analysts described it as the sharpest one-day decline since the FTX collapse in 2022. The broader crypto market has lost trillions in value since October. Many altcoins have fallen even more, with Ethereum and Solana down about 30% to 37% in 2026.
Public companies that loaded up on Bitcoin for their treasuries have felt the pain. Shares of firms with large BTC holdings slid, dragging related stocks with them and adding to the negative mood. The drop has reopened debates about how stable corporate Bitcoin adoption really is, after it was widely seen as a strong vote of confidence.
Normal Pullback or Something More?
Opinions are split. Some traders see this as a needed cooldown after prices ran too hot, with possible support forming around $60,000 to $65,000. Others see a bigger risk of a longer bear phase. James Butterfill of CoinShares warned that once $70,000 fails as a mental support line, $60,000 or lower becomes a real possibility.
Critics, including well-known economists, are using the slide to question Bitcoin’s long-term role. The sharp swings highlight how far it still sits from classic safe-havens like gold, which has held up well during uncertain times.
Still, Bitcoin has a long record of sharp rebounds after painful drops. Supporters point to ongoing fundamentals such as halving cycles, rising network security, and the chance of clearer regulation. Institutional demand may be on pause, but it could return if the economy steadies and risk appetite improves.
What to Watch Next
Traders are focused on key price zones. A clean break under $60,000 could bring more forced selling. A move back above $70,000 could help calm the market and point to a base. U.S. policy updates, including shifts tied to the Fed and any crypto-focused laws, will shape the next stretch.
For retail buyers, the drawdown is a blunt reminder that crypto can move fast in both directions. Many people who bought during the 2025 surge are now sitting on large paper losses, which is pushing fresh debate about how much exposure makes sense.
By early February 6 trading, Bitcoin held around $63,000 to $65,000, and futures pricing showed investors still acting cautiously. It’s not clear yet if this is the low of a normal cycle or the start of something deeper. What’s clear is that crypto sentiment has flipped in just a few months, from celebration to stress.
The next few weeks will put Bitcoin’s staying power under pressure. Prices can change quickly, and right now, the momentum is pointed down.
