Bitcoin fell sharply to a 15-month low of around $63,000-$67,000 on February 5, 2026, extending a year-to-date decline of 23% that erased early 2026 gains, including a January drop to $87,500. The sell-off has wiped over $2 trillion from the global crypto market since October 2025 peaks, despite pro-crypto policies from President Trump. Analysts attribute the plunge primarily to Trump's nomination of hawkish former Fed governor Kevin Warsh as Federal Reserve chair, alongside ETF outflows and weakening stock markets.
Bitcoin, the world's largest cryptocurrency, traded as low as $63,000-$67,000 on February 5, 2026—its weakest level since October 2024 and a 46% drop from its all-time high of $126,210.50 on October 6, 2025 (Coinbase data). The global crypto market has lost approximately $2 trillion since early October's peak of $4.379 trillion, with $800 billion-$1 trillion erased in the past month alone (CoinGecko).
The decline accelerated despite initial post-election boosts from President Donald Trump's pro-crypto agenda after his 2024 victory. Prices surged past $100,000 in late 2024 and climbed through 2025, fueled by a January 2025 executive order positioning the US as the "crypto capital of the planet," regulatory rollbacks, dissolved enforcement teams, and Trump family ventures like World Liberty Financial. However, sentiment soured over recent months, with Bitcoin down 23%-24% year-to-date and 32% over the past 12 months.
Key triggers include Trump's nomination of Kevin Warsh, viewed as hawkish on interest rates and likely to limit liquidity for risk assets. Deutsche Bank noted the drop was "triggered by" the nomination, with steady selling from traditional investors. Julius Baer's Manuel Villegas Franceschi added, "The market fears a hawk. A smaller balance sheet provides no tailwinds for crypto."
US spot Bitcoin ETFs recorded $3 billion in outflows in January, after $2 billion in December and $7 billion in November. Broader weakness in tech stocks (Nasdaq at two-month low), AI hype fade, and precious metals like silver (down 16.6% to $73.41) has spilled over, as crypto correlates with equities.
Impacts rippled widely: Ether dropped 7% to $1,973 (34% YTD), while Solana and Ethereum fell ~37% in 2026. Crypto stocks tumbled—Coinbase -9.1%, Robinhood -8.1%, Riot Platforms -10%. Strategy (formerly MicroStrategy) holds 713,502 BTC bought above $76,000, now valued at $47.8 billion versus $54.3 billion cost. Trump-linked assets plunged: World Liberty Financial token halved to $3.25 billion market cap, American Bitcoin down over 80% since October 2025, and the $TRUMP meme coin also sharply lower. Democrats, including Rep. Ro Khanna, plan probes into a $500 million Emirati investment in the Trump family's crypto firm over conflict concerns.
Experts see a "capitulation mode" and potential multi-month reset. Coin Bureau's Nic Puckrin described it as a shift from distribution to reset, rewarding discipline. Abra Capital's William Barhydt anticipates a rebound absent major disruptions like war, viewing crypto as maturing. Stifel analysts warn of a possible drop to $38,000 tied to US dollar strength.
