Bitcoin plunged to roughly $62,200 on February 5, 2026, in what analysts are calling a full-blown capitulation event. The sell-off was fueled by heightened geopolitical tensions, economic uncertainty, and a cascade of forced liquidations across the crypto derivatives market.
Global Risk-Off Sentiment Sweeps Markets
According to Coinglass data, 427,278 traders were liquidated as nearly $2.06 billion in crypto derivatives positions were wiped out. Of that total, $1.84 billion came from long positions, with Bitcoin longs alone accounting for over $1 billion in losses. The liquidation chain reaction accelerated as Bitcoin broke through key support levels, deepening the slide.
Some analysts view this as the curtain call for the 2023–2025 bull run and the start of a bear market, while others see it as a tempting long-term entry point given deeply oversold conditions. Technical indicators show Bitcoin's RSI at its lowest since the COVID crash of March 2020.
U.S. Stock Market Collapse Adds Pressure
The crypto crash unfolded in lockstep with a broad equity sell-off. The Nasdaq dropped 364 points, the Dow Jones Industrial Average fell 593 points, the S&P 500 declined 84 points, and the NYSE lost 277 points. All major indexes ended in the red as risk appetite evaporated. The synchronized decline highlighted the fragility of global risk assets.
By the end of the day, the total crypto market capitalization had fallen 13.31% to $2.16 trillion. Bitcoin later staged a partial recovery, climbing above $64,000 in late trading. At 4:15 p.m. Eastern, it stood at $63,519, reflecting extreme short-term volatility.
Bitcoin Bounce and Outlook
Despite the rebound, market conditions remain precarious. Some analysts warn that Bitcoin could retest $60,000 if geopolitical risks persist or U.S. economic data deteriorates. Others argue that the forced deleveraging has cleared excessive long positions, setting the stage for a more sustainable recovery. Investors will closely watch Federal Reserve signals and global macro developments in the coming days.