Bitcoin dropped to $60,000 on February 5, 2026, marking its lowest level since October 2024. This significant decline reflected a 24.27% decrease over the past 30 days and placed the cryptocurrency well below its all-time high of over $130,000 achieved just a few months earlier. A bit of recovery followed, with Bitcoin trading around $68,970 as of February 8.
In the wake of this price drop, US Bitcoin ETFs saw a staggering $358.5 million in net outflows for the week ending February 6, highlighting a trend of continued institutional selling that has persisted for three weeks. The significant withdrawals include losses from the iShares Bitcoin Trust, which recorded $115.1 million in outflows, and the Fidelity Wise Origin Bitcoin Fund, which experienced an outflow of $191.3 million. Grayscale Bitcoin Trust also reported $173.8 million exiting its fund.
These outflows have added up to a substantial $1.96 billion in losses year-to-date for Bitcoin ETFs, with just four issuers seeing inflows compared to six reporting outflows. This retreat aligns with disappointing US labor market indicators, particularly an increase in jobless claims that jumped from 209,000 to 231,000 during the last week of January, alongside a drop in job openings.
Furthermore, concerns over technology spending, particularly Amazon’s announcement of significant investment in AI, contributed to the bearish sentiment within the markets. The Crypto Fear & Greed Index reflected these worries, plummeting to a reading of 7, indicating “Extreme Fear.” However, analysts are cautiously viewing this as a potential bottom signal.
Signs of Accumulation Emerge
In a surprising turn amidst the price plummet, data from Glassnode reveals that buying activity has surged across all Bitcoin holder cohorts, for the first time since November. This includes aggressive purchasing by addresses holding between 10 and 100 Bitcoin, as these whales moved in to buy the dip near the lowest price levels.
The Accumulation Trend Score has seen a rebound, rising above 0.5 to hit 0.68, indicating renewed interest amongst buyers. Crypto sentiment analysis indicates that retail investors are actively searching for signs that the market has reversed course, with the term “capitulation” trending on social media.
Google Trends data shows a notable increase in searches for “crypto capitulation,” leaping from a score of 11 to 58 within a week. Some analysts speculate that if sentiment is heavily focused on the expectation of capitulation, the market bottom may already be behind us. However, market strategist Caleb Franzen reminds us that precedents show that bear markets typically feature multiple capitulation events, complicating the quest for a definitive bottom.
Notably, Bloomberg Intelligence analyst Eric Balchunas underscored the resilience of Bitcoin, reminding investors that both stocks and cryptocurrencies have a historical record of bouncing back from downturns to achieve new all-time highs.
As the market braces for retail sales data and the US jobs report on February 11, which could provide crucial insights into economic conditions, expectations are set for average hourly earnings to rise by 3.6%. Analysts predict that positive economic indicators could bolster Bitcoin’s recovery in the weeks ahead, even amid uncertainty in the broader financial landscape.
