On February 5, the price of the leading cryptocurrency dropped below $70,000 for the first time since November 2024.
At one point, the price fell to $69,185, marking a decline of about 45% from its October peak.
The daily liquidation volume in the derivatives market reached $1.07 billion, with $905 million attributed to long positions.
As of February 5, 2026, at 18:36, Bitcoin continued its downward trend, falling to $67,000, while Ethereum dipped below $2,000.
LMAX Group strategist Joel Kruger noted signs of investor capitulation. He stated that technical indicators suggest deep oversold conditions, and the cryptocurrency fear and greed index has reached extreme lows.
According to Glassnode, the Bitcoin capitulation metric recorded its second-largest spike in two years.
A "demand vacuum" has formed in the market: trading volumes are declining, capital inflows have dried up, and investors are realizing losses.
Glassnode analysts reported significant loss realization, with a daily realized loss of $889 million on February 4.
Bob Kendall, author of The Kendall Report, believes that the scarcity of digital gold is being diluted by "synthetic supply" through ETFs and futures.
So here’s the issue: influencers like this guy have a quarter million followers and they claim they don’t know why it is declining… it’s because they don’t understand basic mechanics of price discovery.
— Bob Kendall (The Kendall Report) (@PortfolioXpert) February 4, 2026
They don’t understand that the marginal buyers or the float… https://t.co/6oP1WpN65c
“When supply can be artificially created, an asset ceases to be scarce. The price becomes a game of derivatives rather than a balance of supply and demand. This is what has happened with Bitcoin,” he wrote.
Analysts at Stifel predicted a drop to $38,000 due to the high correlation of cryptocurrencies with the declining tech sector in the U.S.
Assets in the top 10 by market capitalization are currently in the "red zone."
On February 3, K33 Research analyst Vetle Lunde ruled out an 80% drop in Bitcoin from its peak.
Later, technical analyst Peter Brandt described the decline of the leading cryptocurrency as a planned campaign by major players.