Bitcoin experienced a sharp 14% decline on February 5-6, 2026, plummeting from $73,172 to $62,853—briefly dipping below $61,000—erasing over $200 billion in market value across the crypto sector in recent days. Trading data from YCharts and CNBC shows the cryptocurrency under heavy pressure after peaking near its all-time high of $126,296 a few months earlier, with over $1.5 billion in leveraged positions liquidated in 24 hours.
Analysts attribute the sell-off to profit-taking following Bitcoin's record run, renewed regulatory scrutiny from US agencies, and macroeconomic fears including potential tariff hikes under President Trump and rising inflation signals. The drop rippled through altcoins, with Ethereum falling 12% and the total crypto market cap shrinking 11% to $2.4 trillion.
Wall Street observers noted high trading volumes exceeding $100 billion daily, suggesting institutional exits amplified the decline. Bitcoin bulls point to historical post-peak corrections as buying opportunities, citing ETF inflows resuming at $500 million weekly. Bears warn of further downside if $60,000 support breaks, amid global economic uncertainty. As of February 6 afternoon, BTC stabilized around $63,000, but volatility persists.
