On February 6, the crypto market saw a sharp crash as Bitcoin plunged nearly 15%, wiping out around $350 billion in total market value in a single day. Bitcoin’s price fell to $60,030, erasing gains made since its October peak near $126,000.
This drop also wiped out the entire “Trump bump” rally from November 2024, as selling pressure increased from miners, profit-taking, deleveraging, and global market fears.
One of the biggest pressures is coming from Bitcoin miners. Data shows that the average cost to mine one Bitcoin has now risen above $87,000. With Bitcoin currently trading near $65,000, many miners are operating at a loss. To cover expenses, they are being forced to sell their holdings.
Bitcoin miner Reserves have fallen consistently over the past months and now stand near 1.806 million BTC. This indicates that miners are selling more coins than they are keeping, adding to market supply.
At the same time, institutional demand has weakened sharply. Bitcoin exchange-traded funds (ETFs) saw heavy outflows again. On February 5, spot Bitcoin ETFs recorded $258.8 million in net withdrawals.
Although this was lower than the $544.9 million outflow seen a day earlier, the total outflows for the week have already crossed $1.07 billion.
Liquidations also played a major role in pushing prices lower. In just 24 hours, more than $2.65 billion worth of leveraged crypto positions were wiped out. Around 82% of these liquidations came from long traders who were betting on higher prices.
The single largest liquidation happened on Binance, where a BTCUSDT position worth $12 million was forcibly closed.
Even major corporate Bitcoin holders felt the pain. Michael Saylor’s Strategy reported an unrealized loss of about $9 billion, equal to 16% of its massive Bitcoin holdings. Despite this, Saylor urged investors to stay calm and “HODL.”
Yet some leaders, including Ripple CEO Brad Garlinghouse, reminded traders of Warren Buffett’s famous advice: be fearful when others are greedy and greedy when others are fearful.
Bitcoin is now testing one of its most important support levels in years. If the price fails to hold above $60,000, analysts warn that more downside could follow.
Even traders on the prediction market Kalshi expect Bitcoin to touch $58,000 in 2026.
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