Crypto

Digital-asset markets have entered February in full capitulation mode, with total crypto market capitalization collapsing to roughly $2.3 trillion after Bitcoin crashed through $70,000 and briefly touched $60,000—a nearly 50% drawdown from October's all-time high near $126,000. The selloff, driven by a toxic combination of hawkish Fed Chair expectations following Kevin Warsh's nomination, persistent ETF outflows, and a cascading leverage flush that liquidated over $2.5 billion in positions in a single day, has erased more than $2 trillion in crypto market value since the start of the year and dragged BTC to levels not seen since late 2024.

Bitcoin: charts, catalysts, course. BlackRock's iShares Bitcoin Trust (IBIT) recorded its busiest trading day ever on February 5, with over $10 billion in volume as shares plunged 13%—yet the frenzy was driven by exits, not entries, with $434 million in net outflows across spot BTC ETFs that single session. IBIT has logged just ten days of net inflows in all of 2026, and CryptoQuant confirms U.S. ETFs are net sellers year-to-date after purchasing 46,000 BTC at this point last year. Michael Burry has warned of a "death spiral" for corporate holders like Strategy (formerly MicroStrategy), whose 713,502 BTC now sit below its $76,052 average cost basis, while the firm booked a $17.4 billion unrealized loss last quarter. With Ethereum below $2,000, Solana cratering to $81, and record realized losses of $3.2 billion signaling peak capitulation, analysts see a potential base forming in the $54,000–$60,000 range—though a sustained recovery likely requires a decisive shift in macro conditions and a reversal of institutional outflows that show no sign of abating.

Last updated: February 07, 2025