Should You Sell Bitcoin Now? BTC Down 28%, Trading Near $63,000 on Feb 6, 2026

There are moments in financial markets when the noise fades and the numbers speak clearly. This is one of them.

Bitcoin, the world's largest cryptocurrency, has slumped to around $63,000 after a sharp and volatile start to 2026. The token is now down 28% for the year, retreating to levels last seen in October 2024 and forcing investors to confront a difficult question: hold steady or step aside?

The latest decline hasn't been triggered by one shock. Instead, pressure has built across trading desks, institutional flows and global markets all at once.

Liquidations Expose a Fragile Market

Bitcoin dropped to $63,295.74, its lowest level since October 2024, before stabilising near $63,525. The cryptocurrency fell 12.6% in a single session, marking its largest one-day decline since November 2022.

Data from CoinGlass showed more than $1 billion in leveraged Bitcoin positions were liquidated within 24 hours. As prices slid, borrowed trades were forced closed, accelerating the fall. High leverage amplified losses, with even small price moves triggering cascading liquidations across trading platforms. Coin Bureau co-founder Nic Puckrin described the selloff as a capitulation phase rather than orderly selling, suggesting weaker hands were exiting the market quickly.

ETF Outflows Dent Institutional Confidence

Warning signs are also visible beyond trading screens. Spot Bitcoin ETFs, once promoted as the bridge between Wall Street and crypto, are now seeing steady withdrawals. According to analysts, U.S. spot Bitcoin ETFs recorded:

• $3 billion in outflows in January
• $2 billion in December
• Nearly $7 billion in November

Since October, billions have left these funds. Analysts say sustained outflows add selling pressure and weaken institutional confidence, reducing the steady inflows that previously supported prices. Historically, Bitcoin has thrived on fresh capital entering the market. That tide is now receding.

Pressure Spreads Beyond Crypto

Bitcoin's troubles are unfolding alongside broader financial stress. The S&P 500 fell to a seven-week low, while the Nasdaq slid to its weakest level in over two months, signalling a softer appetite for risk assets. Precious metals were also volatile, with silver dropping as much as 18% to $72.21.

The weakness is not limited to Bitcoin alone. CoinGecko data showed the total crypto market has lost nearly $2 trillion in value since its October peak of $4.379 trillion, with around $800 billion wiped out in the past month alone.

Ether fell more than 13% to $1,854, leaving it down 19% this week and nearly 38% for the year.Together, the numbers suggest a broader reset across digital assets.

Political and Liquidity Concerns Weigh on Sentiment

Policy uncertainty has added another layer of pressure. Markets reacted after Donald Trump selected Kevin Warsh as his preferred candidate for Federal Reserve chair, raising expectations of tighter monetary policy and a smaller Fed balance sheet.

Crypto assets have historically benefited from abundant liquidity. Analysts warn that reduced liquidity tends to weigh on speculative investments like Bitcoin. Julius Baer analyst Manuel Villegas Franceschi cautioned that tighter conditions could keep risk appetite subdued for months.

Will Bitcoin Break Below $63,295?

Technical and psychological levels now matter. Analysts including Puckrin and Villegas Franceschi say continued ETF outflows, potential miner selling and weak equities could push prices lower in the near term. However, some note that liquidation spikes often exhaust themselves once excess leverage is cleared, which can help markets stabilise. Volatility, they say, is likely to remain elevated.

What Should Investors Do Now?

This is where discipline matters more than prediction. Avoid excessive leverage. Keep exposure measured. Monitor ETF flows and signals from the Federal Reserve. Don't chase rebounds blindly. Long-term believers may choose to hold through the storm. Short-term traders may prefer caution until volatility cools. Neither approach is inherently wrong, panic decisions usually are.

Bitcoin has endured many downturns before. But each one tests conviction. For now, the market is sending a simple message: risk has returned, and easy gains are not guaranteed.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks, and past performance does not guarantee future returns.