Bitcoin has dipped under the $70,000 mark for the first time since late 2024, extending a four-month decline that has wiped out much of its post-election gains.
As of February 5, 2026, the cryptocurrency sits down about 44 percent from its October high and 20 percent lower year-to-date, reflecting broader investor caution.
Market indicators point to growing unease, with the CNN Fear and Greed Index hovering at 34, signaling fear, and the VIX volatility gauge hitting levels not seen since November 2025. Once touted as digital gold, Bitcoin has instead moved in tandem with riskier assets, suffering as traders pull back from volatile investments.
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Several factors weigh on the price. Geopolitical strains, including President Trump’s threats toward Iran after actions in Venezuela, tensions with allies over Greenland, and tariff warnings to South Korea, have rattled markets. Advances in AI, such as updates from companies like Anthropic, sparked sell-offs in tech stocks, adding to the pressure.
Institutional interest has cooled, leading to lower trading volumes and bigger swings from individual moves. Bitcoin ETFs, expected to drive steady inflows, have fallen short of hopes. Analyst Michael Burry noted on his platform that some crypto holders may be liquidating gold and silver to cover losses, contributing to precious metals volatility.
In stark contrast, gold has climbed 24 percent since October, surpassing $5,500 per ounce and reinforcing its role as a true safe haven during uncertainty.
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The drop has erased the so-called Trump bump from late 2024, when Bitcoin surged on expectations of friendlier regulations. Treasury Secretary Scott Bessent recently told Congress the government has no power to intervene in crypto markets.
History offers some context, with past crashes like 74 percent in 2018 and back-to-back slumps in 2021-2022 eventually giving way to recoveries within 18 months.
Quick Summary:
Bitcoin fell below $70,000 on February 5, 2026, down 44% from its October peak and 20% YTD, amid risk-off trading, geopolitical tensions under Trump, AI-driven stock dips, and waning institutional support. Gold has soared as a safe haven alternative, while experts note historical patterns of eventual rebounds.