On February 5, 2026, the cryptocurrency market faced another sharp decline
At the time of reporting, $BITCOIN (BTC) was trading around $71,611, down more than 3% on the day. 🟢 Ethereum ($ETH ) was priced near $2,133, showing a daily drop of almost 1%. 🟢 Other major cryptocurrencies, including Solana (SOL), also recorded notable losses.
🚨 What triggered the renewed crypto market decline? ✍️ Analysts point to several structural issues rather than short-term panic. • Weak market participation According to a recent weekly report $BITCOIN ’s current weakness is driven by long-term structural factors. The firm’s bull market score index has fallen to zero, and Bitcoin is trading well below its October high. This suggests that buying demand is shrinking, liquidity is tightening, and the market is no longer strong enough to absorb selling pressure.
📈 Data from Glassnode supports this view, showing low spot trading volumes and weak demand. Analysts note that the problem is not fear-driven selling, but a lack of active buyers. In addition, stablecoin growth — which usually boosts trading activity and risk appetite — has stalled. Tether (USDT) has even seen negative market cap growth for the first time since 2023.
📈 Rising selling pressure from institutions Another key factor is increased institutional selling. The Coinbase Premium Gap, which compares Bitcoin prices on Coinbase (BTC/USD) and Binance (BTC/USDT), has dropped to its lowest level in over a year. This indicator is often used to track institutional demand.
💥 Analyst Darkfost explained that the negative premium suggests professional investors are selling Bitcoin. As institutional selling pressure increases, prices continue to move lower, reinforcing the market’s downward trend. #WhaleDeRiskETH #BitcoinDropMarketImpact #TrumpEndsShutdown