Bitcoin, the world’s most popular cryptocurrency, dropped suddenly on February 5, 2026, causing prices down by nearly 10% in a single day. This sudden fall caused investors losing more money in a single day than ever before in Bitcoin’s history. Experts say this was caused by weak market conditions and strong selling pressure.
On that day, Bitcoin’s price went down by more than $10,000, bringing the value to around $64,000. Many people who bought Bitcoin at higher prices sold their holdings at big loss, meaning they lost real money. Because so many people sold at once, the total losses reached to about $3.2 billion in one day. This is the largest single-day amount investors have ever lost by selling Bitcoin.
One reason for the big losses was low activity in the Bitcoin market. which means there are not enough buyers and sellers to keep prices stable. On February 5, there were not enough buyers to handle all the sell orders, causing the price to drop suddenly.
Another sign that the market was weak is that this drop happened even without any big news. Experts said the weak market and big traders having to sell their Bitcoin made prices go lower and caused panic selling.
This sudden drop came after a long time when Bitcoin had high prices. The drop to about $64,000 was the lowest since 2024, showing how much prices fell. Many investors who bought Bitcoin at higher prices lost a lot of money quickly.
The Bitcoin crash also affected other cryptocurrency coins. When Bitcoin drops suddenly, many other coins like Ethereum, Dogecoin, and XRP usually go down too. Many investors in these other cryptocurrencies also lost money. People who were hoping to make profits saw their investments shrink quickly, and some had to sell their coins at a loss. The crash showed how all cryptocurrencies are connected, and how a big drop in Bitcoin can affect the whole crypto market.
This crash did not just affect everyday traders. Big companies that hold a lot of Bitcoin also reported huge losses. One example is Strategy, a company run by a well-known Bitcoin supporter. The company said it lost more money than before because Bitcoin prices went down and the value of its other cryptocurrencies also dropped.
Investors call these losses ‘realized losses’ when people sell their Bitcoin or other cryptocurrencies for less than they paid. Many traders were forced to sell because the market was weak and unstable, which added more pressure and made prices fell more.
This kind of crash is not new in the world of cryptocurrency. In the past, Bitcoin has dropped a lot in one day during big market events, like the global market crash in March 2020 and other problems in the crypto world. But the losses on February 5 are different because this time, sellers lost a record amount of money in just one day, more than ever before.
Experts say that Bitcoin and crypto markets are still very volatile, meaning prices can go up and down fast. While long-term crypto fans believe prices may recover over time, short-term traders are reminded that big price swings are part of how crypto works.
The recent Bitcoin crash shows how quickly money can be lost when markets fall and how important it is for investors to understand risks. Many analysts are looking at Bitcoin to see if prices will stop falling or keep dropping.