Bitcoin sank sharply on Thursday (Feb 5), hitting US$63,295.74—its lowest level since October 2024—as risk sentiment weakened across global markets. The world’s largest cryptocurrency was last down 12.6 per cent at US$63,525, marking its steepest one-day drop since November 2022. Analysts noted that roughly US$1 billion in bitcoin positions were liquidated over the past 24 hours, according to CoinGlass data.
The broader crypto market has now shed US$2 trillion since peaking at US$4.379 trillion in early October 2025, with around US$800 billion lost just in the past month, CoinGecko figures show. Bitcoin’s weekly losses stand at 17 per cent, taking its year-to-date decline to 28 per cent. Ether, the second-largest cryptocurrency, fell more than 13 per cent to US$1,854, extending its weekly slide to 19 per cent and year-to-date losses to nearly 38 per cent.
Market sentiment has been rattled by turbulence in precious metals and equities. Silver dropped as much as 18 per cent to US$72.21, while gold also showed increased volatility. The tech-heavy Nasdaq slid to a two-month low, and the S&P 500 hit a seven-week trough, as investors reassessed the outlook for AI-driven stocks.
“It’s clear the crypto market is now in full capitulation mode,” said Nic Puckrin, co-founder of Coin Bureau. “This is no longer a short-term correction but a transition phase that typically takes months to stabilise.”
The downturn has also impacted firms holding bitcoin and other digital assets, raising concerns that market turbulence is spilling beyond token prices. Some analysts attribute part of the sell-off to political developments in the US. The appointment of Kevin Warsh as President Donald Trump’s Federal Reserve nominee has sparked fears of tighter monetary policy. “A smaller Fed balance sheet is unlikely to support speculative assets like crypto,” said Manuel Villegas Franceschi of Julius Baer.
Institutional selling has further amplified losses. Deutsche Bank noted that US spot bitcoin ETFs experienced outflows exceeding US$3 billion in January, following billions in redemptions in the previous two months. “This steady selling indicates traditional investors are losing interest, and overall pessimism toward crypto is rising,” the analysts said.
Bitcoin’s trajectory has long mirrored trends in the tech sector. The recent rout in global software stocks has compounded the slide in crypto valuations. Jefferies strategist Mohit Kumar warned that continued price declines could trigger forced liquidations among miners, creating a “vicious cycle” in the market.
“Crypto should remain a small portion of any portfolio,” Kumar added. “However, given its high retail ownership, the sector continues to pose broader market risk.”
