In a dramatic turn of events, Bitcoin has been trading around the $67,000 mark in February 2026 after enduring its most significant loss event in history. On February 5, the cryptocurrency experienced a staggering $3.2 billion in realized losses, surpassing even the infamous Terra Luna collapse of 2022.
The sharp decline observed on that fateful day saw Bitcoin plummet from an impressive $70,000 to a dire $60,000. Daily net losses during this sell-off exceeded an astonishing $1.5 billion, marking this event as a textbook capitulation, as noted by data platforms.
The Entity-Adjusted Realized Loss metric, tracked by analysts, reached an unprecedented level during this crash. This particular metric records the USD value of coins sold at a loss, illustrating the extent of the sell-off crisis. The previous record was set during the Terra Luna disaster, where losses amounted to $2.7 billion.
As the dust began to settle, Bitcoin has managed to reclaim some ground but remains under pressure as it grapples with the formidable resistance level of $70,000. Currently trading at $67,102, Bitcoin’s recent movements indicate a struggle to break free from its current range-bound state after the volatility of earlier this month.
Adding to the mix of factors influencing Bitcoin’s price is the strengthening U.S. labor market, evidenced by a January employment report that showed job growth surpassing expectations. The recent payrolls report raised concerns about the likelihood of Federal Reserve interest rate cuts in the upcoming months, prompting traders to adjust their forecasts accordingly. Market sentiment now reflects reduced odds of rate easing until June, a stance that inherently dampens risk appetite for volatile assets like cryptocurrencies.
As traders monitor economic developments closely, they are now eagerly awaiting the release of the U.S. Consumer Price Index (CPI) report on Friday. Insights from this report are anticipated to steer expectations regarding inflation trends and shape the Federal Reserve’s monetary policy direction, which is critical for risk-sensitive assets such as Bitcoin.
The prevailing sentiment in the market suggests caution amongst investors. Bitcoin’s failure to breach the $70,000 barrier indicates a hesitance to engage aggressively, leading analysts to advocate for a more careful approach in the current market environment.
As of now, Bitcoin lingers at approximately $67,600 and appears to be applying brakes after that historic loss event. Until clearer indications emerge regarding inflation and economic growth, market activity could remain subdued.
Ultimately, as Bitcoin navigates this tumultuous phase, the question remains: has the bottom been reached, or is there more volatility ahead? Investors will undoubtedly keep a watchful eye on incoming data, hoping for signs of stabilization in the world’s leading cryptocurrency.
