Bitcoin (BTC) has endured its sharpest two-week decline since June 2022, plunging over 50% from its October 2025 peak, as reported by The Block on February 6, 2026. The cryptocurrency bottomed at $60,000 before rebounding to $70,000, up 4% intraday but still down 35% year-over-year, according to The Block’s price data. Bitwise CIO Matt Hougan attributes the sell-off to long-term holder profit-taking (over $100B sold in 2025), leverage liquidations, and macro risk aversion, with capital rotating to AI stocks and precious metals. X posts from @EricBalchunas reinforce historical resilience, noting BTC’s 100% record of recovering to new ATHs.
Unlike the 2022 crash driven by crypto-specific failures (e.g., FTX collapse), the current drawdown lacks systemic stress, with no signs of insolvency or broken infrastructure, according to Hougan’s investor note. Spot Bitcoin ETFs saw record July inflows but slowed in August, with recent outflows. Ethereum (ETH) ($4,070) and altcoins followed suit, but DeFi TVL holds at $167B, according to DefiLlama. Hougan emphasizes mature market dynamics, with 59% institutional ownership providing a buffer. Sentiment nears historic lows, akin to 2018 and 2022 bottoms, suggesting bad news is priced in.
Profit-taking by long-term holders, fearing a repeat of post-halving cycles, combined with leverage unwinds, amplified the drop. Gold and silver sell-offs alongside U.S. equities pressure confirm macro-driven risk-off, not crypto-native issues. Fed Chair Powell’s upcoming Jackson Hole speech (August 22, 2025) could sway sentiment, with 85% odds of a September rate cut, according to CME FedWatch. Eric Balchunas argues that drawdowns historically fail to derail BTC’s trajectory. XRP ($2.29) and Solana (SOL) ($184.50) also declined, according to CoinMarketCap.
Hougan sees potential exhaustion, with sentiment lows indicating a bottom, but cautions deep drops if macro stresspersistss. Analysts target $80,000 on recovery, with $60,000 as firm support, according to TradingView. Investors should monitor ETF flows on SoSoValue and FOMC minutes on federalreserve.gov. Dollar-cost average into BTC with stop-losses below $60,000, diversifying into USDC for stability, Techopedia. Follow @TheBlock__ on X for updates. While 2022-style collapses seem unlikely, leverage risks and rate uncertainty warrant caution, with $150,000 possible by 2026 on dovish policy.
