The digital asset market suffered a major blow this Thursday, February 5, 2026, as the Bitcoin price plummeted below the psychological barrier of $70,000. This crash, which saw the cryptocurrency touch lows of $69,100, represents the lowest level recorded since November 2024, effectively erasing fifteen months of gains accumulated by bullish investors in a single session.
According to data reported by market analysts, the retreat was driven by massive selling pressure that triggered the liquidation of $130 million in long positions within just four hours. This movement, far from being random, seems to respond to a “campaign selling” strategy, where large entities are offloading their holdings following a strict schedule that has completely saturated the existing market demand.
Correlation With Precious Metals and Signs of Institutional Weakness
The decline of the market’s primary currency coincided with extreme volatility in precious metals, where gold retreated from $5,100 to as low as $4,789 per ounce. Nevertheless, the Bitcoin price showed even more pronounced weakness by breaking key technical supports, confirming that investors are rotating capital away from risk assets toward less volatile instruments amid global macroeconomic uncertainty and trade tensions.
On the other hand, the Coinbase Premium has fallen to its lowest levels in over a year, sitting even lower than the lows seen after the implementation of major tariffs. This negative indicator suggests a significant lack of buying interest from U.S. institutions, while long-term “OG” whales continue to dump their holdings systematically on the secondary market as if the asset were still at all-time highs.
Furthermore, the breach of the 200-week exponential moving average (EMA) trend line has raised alarms among technical traders within the blockchain ecosystem. By failing to find support at current levels, the market now faces a potential descent toward the $50,000 zone, which would represent a deep structural adjustment for the current market cycle and the broader digital finance sector.
Could the Bitcoin Price Fall Further to the $50,000 Support Zone?
Experts such as Peter Brandt have noted that the nature of the current decline, characterized by eight consecutive days of lower lows, does not reflect retail panic but rather institutional distribution. Moreover, there is speculation that large government entities might be offloading their seized holdings similarly to past episodes, generating a supply glut that is difficult for buyers to absorb in the short term.
Moreover, the lack of immediate bullish catalysts and the stagnation in spot Bitcoin ETF adoption have weakened investor sentiment across the board. Since retail participation is currently at 2026 lows, the Bitcoin price remains at the mercy of institutional capital flows, which seem to be prioritizing immediate liquidity over holding risk assets in the face of a potential economic recession.
Ultimately, a weekly close below $69,000 would confirm the entry into a more prolonged and painful bearish phase for the entire sector. While some analysts believe this correction is healthy to flush out excessive leverage, the persistent selling pressure from large whales suggests that the market’s definitive bottom might still be a long way from being reached.
