TLDR

  • Bitcoin experienced a significant drop to $60,000 on February 5, 2026, reaching its lowest point since October 2024, before finding support near $68,970.
  • US Bitcoin ETFs recorded outflows totaling $358.5 million for the week ending February 6, continuing a three-week trend of institutional selling.
  • The Crypto Fear & Greed Index plunged to 7, indicating a state of “Extreme Fear,” which some analysts interpret as a potential market bottom.
  • Data from Glassnode reveals that for the first time since November, all Bitcoin holder segments are accumulating, with particular aggressive buying from wallets holding 10-100 BTC.
  • The recent selloff was influenced by weaker-than-expected US labor market data and concerns regarding significant AI spending by tech giants like Amazon, although expectations for a Fed rate cut in June remain high at 75%.

Bitcoin’s price fell to $60,000 on Thursday, February 5, marking its lowest valuation since October 2024. The cryptocurrency has since seen a modest recovery, trading around $68,970 as of February 8.

Bitcoin (BTC) Price

This decline represents a 24.27% decrease over the last 30 days. Bitcoin is currently down 11.9% year-to-date and has fallen more than 50% from its all-time high reached in October.

US Bitcoin ETFs experienced net outflows of $358.5 million in the week concluding February 6. This marks the third consecutive week of outflows from institutional investors.

The iShares Bitcoin Trust saw $115.1 million in outflows, while the Fidelity Wise Origin Bitcoin Fund experienced $191.3 million in redemptions. The Grayscale Bitcoin Trust reported outflows of $173.8 million.

Year-to-date, Bitcoin ETFs have collectively seen $1.96 billion in outflows. Four ETF issuers reported weekly outflows, in contrast to six that recorded inflows.

Weaker-than-anticipated US labor market data contributed to the selloff. Jobless claims increased from 209,000 to 231,000 for the week ending January 31.

Job openings decreased from 6.928 million in November to 6.542 million in December. Amazon’s announcement of a $200 billion investment in AI for 2026 also heightened market concerns.

The Crypto Fear & Greed Index declined from 20 to 6 on Saturday before a slight increase to 7 on Sunday. The index remains firmly within the “Extreme Fear” zone.

Signs of Accumulation Emerge

Despite the price decline, on-chain data indicates buying activity across all Bitcoin holder demographics. Glassnode’s Accumulation Trend Score by cohort rose above 0.5, reaching 0.68.

Accumulation Trend Score by cohort (Glassnode)
Source: Glassnode

This is the first instance of widespread accumulation observed across various wallet sizes since late November. The previous occurrence coincided with Bitcoin forming a local bottom near the $80,000 mark.

Wallets holding between 10 and 100 Bitcoin have been the most active buyers during the recent downturn, stepping in as prices approached $60,000.

Crypto sentiment analysis platform Santiment reports that retail investors are actively seeking indicators of a market bottom. The term “capitulation” has emerged as a top trending topic on social media.

Google Trends data shows a significant increase in searches for “crypto capitulation,” rising from a score of 11 to 58 between the weeks ending February 1 and February 8. Santiment suggests that if widespread anticipation of capitulation exists, the market bottom may have already been established.

Market analyst Caleb Franzen has cautioned that bear markets typically involve multiple capitulation events, and not all analysts agree that the current cycle bottom has been reached.

Bloomberg Intelligence analyst Eric Balchunas noted that both stocks and Bitcoin have historically recovered from downturns to achieve new all-time highs. Over 90% of ETF assets remain invested despite recent outflows.

The CME FedWatch Tool indicates an increased probability of a June rate cut, rising from 67.3% on January 30 to 75% on February 6. Lower borrowing costs generally tend to stimulate demand for risk assets like Bitcoin.

Retail sales data and the US jobs report, both scheduled for release on February 11, will offer further insights into economic conditions. Economists anticipate that average hourly earnings will rise by 3.6% year-on-year in January, a decrease from 3.8% in December.

The unemployment rate is projected to remain at 4.4%. Economic data aligning with these forecasts could support Bitcoin’s recovery in the upcoming weeks.