Crypto slump deepens: Bitcoin breaks below $70,000 as ‘digital gold’ claim faces fresh test
The losses have accelerated this week, with bitcoin plunging roughly 17% in the past five days. Bitcoin has been on a steady decline for more than three months and is now over 45% below its all-time high of $126,000 reached in early October.
- Feb 5, 2026,
- Updated Feb 5, 2026 8:42 PM IST
Bitcoin slipped below the psychologically crucial $70,000 mark on February 5, extending a sharp sell-off that has shaken confidence in the world’s largest cryptocurrency once hailed as “digital gold” and a dependable store of value.
The flagship token fell as low as $69,055.46, its first dip below $70,000 since November 2024. Bitcoin is now down nearly 29% over the past year, sharply underperforming traditional safe havens such as gold, which has surged 69% over the same period. The contrast has reignited debate over whether bitcoin can truly function as a hedge against inflation and macroeconomic uncertainty.
The losses have accelerated this week, with bitcoin plunging roughly 17% in the past five days, putting it on track for its worst weekly performance since November 11, 2022, when prices fell 21%. Bitcoin has been on a steady decline for more than three months and is now over 45% below its all-time high of $126,000 reached in early October.
Crypto hit as tech rout deepens
The sell-off has spread across the broader crypto market. Ether has dropped about 23% this week, also on course for its worst week since November 2022. Solana slid to $88.42 today, near a two-year low, and is down 24% on the week, while other tokens such as XRP have fallen even more sharply from recent highs.
Analysts point to a worsening downturn in US technology stocks, which has filtered through to cryptocurrencies, underlining their growing correlation with risk assets rather than their promised role as alternatives to fiat currencies or safe havens like gold.
Institutional flows have also turned unfavourable. US-listed bitcoin exchange-traded funds are net sellers in 2026, according to CryptoQuant, after purchasing about 46,000 bitcoins during the same period last year.
Bitcoin spot ETFs led the downturn with a $544.94 million net outflow, spread across six funds. Ether spot ETFs also remained under pressure, posting a $79.48 million net outflow. Solana spot ETFs were not spared, recording a $6.71 million net outflow.
Historically, bitcoin has suffered declines of 70% to 80% during past “crypto winters.” A drop to around $40,000 would represent a roughly 70% fall from its October peak — an outcome that some investors now see as increasingly plausible.
Bitcoin slipped below the psychologically crucial $70,000 mark on February 5, extending a sharp sell-off that has shaken confidence in the world’s largest cryptocurrency once hailed as “digital gold” and a dependable store of value.
The flagship token fell as low as $69,055.46, its first dip below $70,000 since November 2024. Bitcoin is now down nearly 29% over the past year, sharply underperforming traditional safe havens such as gold, which has surged 69% over the same period. The contrast has reignited debate over whether bitcoin can truly function as a hedge against inflation and macroeconomic uncertainty.
The losses have accelerated this week, with bitcoin plunging roughly 17% in the past five days, putting it on track for its worst weekly performance since November 11, 2022, when prices fell 21%. Bitcoin has been on a steady decline for more than three months and is now over 45% below its all-time high of $126,000 reached in early October.
Crypto hit as tech rout deepens
The sell-off has spread across the broader crypto market. Ether has dropped about 23% this week, also on course for its worst week since November 2022. Solana slid to $88.42 today, near a two-year low, and is down 24% on the week, while other tokens such as XRP have fallen even more sharply from recent highs.
Analysts point to a worsening downturn in US technology stocks, which has filtered through to cryptocurrencies, underlining their growing correlation with risk assets rather than their promised role as alternatives to fiat currencies or safe havens like gold.
Institutional flows have also turned unfavourable. US-listed bitcoin exchange-traded funds are net sellers in 2026, according to CryptoQuant, after purchasing about 46,000 bitcoins during the same period last year.
Bitcoin spot ETFs led the downturn with a $544.94 million net outflow, spread across six funds. Ether spot ETFs also remained under pressure, posting a $79.48 million net outflow. Solana spot ETFs were not spared, recording a $6.71 million net outflow.
Historically, bitcoin has suffered declines of 70% to 80% during past “crypto winters.” A drop to around $40,000 would represent a roughly 70% fall from its October peak — an outcome that some investors now see as increasingly plausible.