Bitcoin Approaches $60,000 as Investors Avoid Risky Assets

• Bitcoin touched its weakest level since October 2024, before the U.S. presidential election, and is on track for a 16% weekly decline
• U.S. spot bitcoin ETFs recorded outflows exceeding $3 billion in January, following outflows of $2 billion in December and $7 billion in November
• Analysts attribute the decline to unwinding of overleveraged positions and poor risk management, as investors who 'assumed prices only go up' face the consequences of treating bitcoin as a 'one-way asset'

Summary

Bitcoin Tests Critical Support Amid Broader Risk Asset Selloff

Bitcoin hit a 16-month low of $60,008.52 on Friday, February 6, 2026, before recovering to trade at $64,153.24 (up 1.64%) in volatile trading. This marked the cryptocurrency's weakest level since October 2024, shortly before the U.S. presidential election when the winning candidate signaled crypto support.

Key Figures:

• Bitcoin down 16% for the week and 27% year-to-date
• Ether fell to a 10-month low of $1,751.94, down 17% weekly and 36% year-to-date
• Global crypto market capitalization declined from $4.379 trillion in early October to approximately $2.379 trillion—a $2 trillion loss
• Over $1 trillion erased in the past month alone

Market Outflows:

U.S. spot bitcoin ETFs recorded significant outflows: $3 billion in January, $2 billion in December, and $7 billion in November, according to Deutsche Bank analysts.

Market Context:

The cryptocurrency decline coincides with a broader technology stock selloff and increased volatility in precious metals. Bitcoin's correlation with the tech sector, particularly AI-driven enthusiasm, has contributed to its weakness. Analysts attribute the downturn to overleveraged positions and inadequate risk management, with investors unwinding "crowded positions" rapidly.

Expert Analysis:

Industry experts characterize the decline as a "bill coming due" for funds treating bitcoin as a one-way asset without proper risk controls, rather than fundamental crypto market failure. The selloff reflects broader market deleveraging affecting multiple asset classes considered safe havens, including gold and silver.