This is a drop in money. It went from one hundred twenty six thousand dollars to sixty thousand dollars. This happened in four months. Nobody thought this would happen. It was a surprise. The money just kept going down. This is a big change, in a very short time. The four month freefall of money was something nobody saw coming.
Let us go back for a moment. Back in October 2025 Bitcoin was doing well at a record price of more than $126,000. People were very excited. Big companies were starting to use Bitcoin. Exchange traded funds were buying up tens of thousands of Bitcoin. The story about Bitcoin was very convincing. It was, like gold it could help with inflation it was a unique investment and it was the future of money. Fast forward to this past Thursday, February 5th and Bitcoin fell below $61,000, which was a big drop. It was like people were giving up on Bitcoin completely.
The value of something has gone down by 50 percent from the highest it has ever been. The value of the thing has been cut in half. That happened in just four months. The thing has lost half of its value.
Bitcoin was not the one that had a tough time. Ethereum also had a drop to one thousand nine hundred dollars, which is the lowest it has been since early two thousand twenty five. Solana went down to eighty eight dollars, which's the lowest it has been in two years. XRP fell below one dollar and forty cents. The meme coins also did badly with the TRUMP token losing more, than twenty one percent of its value in just one day. If you look at the one hundred cryptocurrencies ninety of them ended the week with losses.
Thursday's Bloodbath: A Day for the History Books
February 5th 2026 will be remembered for a time. Bitcoin had a bad day it went down by more than 15 percent in just one day. At one point the price of Bitcoin even touched $60,062. Then people started buying it again when it was very cheap. This happened because people were buying Bitcoin with borrowed money and when the price went down they had to sell it so more than $2.7 billion of these bought-with-borrowed-money investments were sold in 24 hours. The loss that people made on Bitcoin was a record $3.2 billion this is what the data, on the Bitcoin network shows it was a classic case of people giving up on Bitcoin.
The Fear and Greed Index has really dropped it is now at 5. I do not mean 50 I do not mean 25 I mean the Fear and Greed Index is at 5. This is very bad the Fear and Greed Index being at 5 puts it in the "Extreme Fear" area, which's even worse, than what most traders are used to seeing with the Fear and Greed Index.
The sell-off wasn't crypto-specific. Silver plunged 14% on the same day. Gold slid over 2%. Tech stocks continued bleeding, with the XLK ETF posting its third straight losing day. Software stocks, crypto miners and crypto-adjacent equities like Coinbase and MicroStrategy (now Strategy) all fell double digits.