Bitcoin is currently experiencing a significant downturn, slipping below the $64,000 mark as selling pressure intensifies. This represents a notable decline from its record highs of around $126,000 last fall, with the price nearly being cut in half. The broader cryptocurrency market has also felt the impact, with over $500 billion in market value wiped out in the past week.
As of today, February 5, 2026, Bitcoin's price is hovering around $65,206.99, reflecting a 9.33% decrease in the last 24 hours and a 22.63% drop over the past week. CoinMarketCap data shows a slightly higher price of $66,203.26, with a 24-hour trading volume of $106,551,481,401 USD. CoinGecko reports a price of $65,224.19, a 24-hour trading volume of $120,416,603,137, and an 11.49% price decline in the last 24 hours. This increased trading volume signals a recent rise in market activity.
The reasons behind this downturn are multifaceted. One factor is a general shift away from risk assets as investors adjust their portfolios toward more defensive positions. Market analysts are pointing to a potential "crypto winter," reminiscent of previous bear market cycles in the cryptocurrency space. "The 'Bitcoin Boomer Adoption' Trade is Dead," according to one market expert.
Predicting the bottom of a market correction is always a challenge. Bitcoin prediction markets suggest $65,000 as the most likely February outcome, indicating low probabilities for aggressive upside scenarios in early 2026. However, some analysts remain optimistic about Bitcoin's long-term prospects. JPMorgan, for example, views Bitcoin as a more attractive long-term investment than gold, despite the recent sell-off.
It's important to consider Bitcoin's tokenomics when evaluating its potential. Bitcoin's economic system is designed to mimic digital gold, with a limited supply of 21 million coins. New Bitcoins are created through mining, where computers solve complex puzzles to verify transactions and are rewarded with newly created Bitcoins. The reward started at 50 Bitcoin per block and halves roughly every four years, a process known as "halving". Currently, miners receive 3.125 Bitcoin per block, with the next halving expected in 2028, reducing the reward to 1.5625 Bitcoin. This decreasing supply makes Bitcoin inherently resistant to inflation.
Despite the current market volatility, Bitcoin's underlying fundamentals remain unchanged. Its decentralized nature, limited supply, and increasing adoption continue to make it a compelling asset for many investors. However, it is crucial to acknowledge the inherent risks and uncertainties associated with cryptocurrency investments and to conduct thorough research before making any decisions. In countries facing economic hardship, cryptocurrency is being explored as a store of value.