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Yesterday, $BTC was hovering around $60,000, down more than 50% from its peak. At the same time, Strategy, the world’s largest corporate holder of Bitcoin, just reported the biggest loss in its history.
Zoom out, and the picture looks even darker. Silver collapsed over 20% overnight after aggressive selling by Chinese whales. The S&P 500 turned red as Amazon and Google rattled Wall Street. All of this unfolded in less than 24 hours.

“Be greedy when others are fearful.” But is it time yet?

Bitcoin Loses More Than Half Its Value From the Top
February 5, Bitcoin broke below $70,000 and slid rapidly. By early morning Vietnam time, BTC briefly touched $60,062, its lowest level in nearly a year and a half. Around 8 a.m., it rebounded slightly to the $63,000 area, but still posted a loss of over 15% in just 24 hours.
Put into a broader context, the move is even more unsettling. Bitcoin is down roughly 31% year-to-date in 2026 and has lost more than half its value from the all-time high of $126,000 set in early October 2025. This also marks the sharpest one-day drop since the FTX collapse in November 2022.

Altcoins fared even worse. Ethereum plunged to the $1,700 range, shedding more than 40% over the past seven days. Solana dropped around 30%, falling to the $40–45 zone. In total, the crypto market has declined 14%, shrinking to $2.13 trillion and wiping out over $1 trillion in market value in just half a month.

U.S. Stocks, Gold, and Silver Join the Sell-Off
This was not a crypto-only crash. The sell-off spread across multiple asset classes simultaneously.
The chain reaction started in China’s silver market. Last night, as the Shanghai exchange opened, silver prices collapsed more than 20%.

According to [Bloomberg](undefined), five to six large players immediately opened massive short positions, including a well-known Chinese commodities trader who reportedly shorted around 450 tons of silver. The Shanghai exchange was forced to intervene, preventing these accounts from opening additional positions. Silver plunged from above $111 per ounce in late January to around $76 per ounce, a nearly 30% drop.

The silver crash triggered a domino effect. Gold fell over 2% to the $4,820 per ounce level. Palladium and platinum turned red. More importantly, the shock spilled over into equities and crypto.
On February 5, the S&P 500 closed at 6,798, down more than 1%. Tech stocks continued to face heavy selling. Oracle fell 7%, AMD lost another 4%, and software and AI-related stocks were dumped aggressively.

This is a classic case of cross-asset contagion. When one asset class collapses, it drags down others that share the same investor base. Many crypto investors also trade silver, gold, and tech stocks. When silver crashed, margin calls forced them to liquidate crypto and equities to cover losses. Falling stock prices then worsened sentiment, creating a self-reinforcing selling loop.Why Did Markets Fall So Hard?
Why Did Markets Fall So Hard?
First, fears over Big Tech’s AI spending binge.

Google recently announced [$185 billion in capital expenditures for 2026](undefined). Shortly after, Amazon shocked markets with an even larger $200 billion CAPEX plan. Total 2026 CAPEX by U.S. tech giants is now estimated at $804 billion.
If this were a military budget, it would rank second globally, behind only the U.S. military. Investors are starting to ask whether Big Tech is going all-in on AI, and what happens if AI fails to deliver meaningful returns soon.

Second, weak U.S. labor data.

The Challenger report released on February 5 showed that U.S. companies announced over 108,000 layoffs in January, double the figure from a year earlier. The tech sector led the cuts with more than 22,000 job losses. Initial jobless claims rose to 231,000, above expectations. More concerning, the JOLTS report showed job openings falling to 6.5 million, far below the 7.2 million the market expected and the lowest level since January 2021.
Third, ongoing geopolitical tensions.

The U.S. continues to deploy military assets to the Middle East, including aircraft carriers, destroyers, and dozens of C-17 military transport flights moving equipment into the region. While U.S.–Iran relations show signs of easing at the diplomatic level, military activity beneath the surface remains active.
Fourth, institutional capital is pulling out of crypto.

At this time last year, U.S. spot Bitcoin ETFs were net buyers of around 46,000 BTC. This year, they are net sellers. According to CoinShares, outflows from digital asset investment products reached $1.7 billion last week alone, bringing total net outflows for the year to $1 billion.

Fifth, fears surrounding Strategy’s Bitcoin exposure.

Amid the turmoil, Strategy, the world’s largest corporate Bitcoin holder, reported a $12.4 billion loss for Q4 2025.
The company currently holds 713,502 BTC at an average purchase price of $76,052, with a total cost basis of $54.26 billion. When BTC fell below $61,000 this morning, its unrealized losses briefly exceeded $10 billion. Strategy’s stock dropped more than 17% to $107, an 18-month low, and has lost roughly 71% of its value over the past six months.

Co-founder Michael Saylor remains defiant, calling Bitcoin a “digital fortress” and posting “HODL” ahead of the earnings release. However, on the Myriad prediction market, the probability that Strategy will be forced to sell some Bitcoin this year has jumped from 10% to 32%.

What Lies Ahead?
First is the U.S. Non-Farm Payrolls report, due at 8:30 p.m. on February 11. This data point will be crucial in determining whether the Federal Reserve may cut interest rates earlier than expected. Following the recent weak data, markets have raised the probability of a March rate cut from 9% to nearly 25%. Another disappointing jobs report could push those odds even higher.Second is the AI and CAPEX narrative. 2026 is widely seen as a decisive year for the AI race. Big Tech has committed unprecedented amounts of capital. If AI fails to show tangible results this year, investor patience could wear thin by 2027.Finally, geopolitics remains a key wildcard, particularly U.S.–Iran negotiations in Oman. Any sign of de-escalation would give markets additional room to recover.
Source: 5PhutCrypto