According to Gate market data, the price of Bitcoin briefly dropped to $59,980.6 on the morning of February 6, 2026, marking the first time since November 2024 that it has fallen below the critical $60,000 psychological threshold. At the same time, spot silver prices plunged 14.30% in a single day to $72.59 per ounce, the largest recent decline. This sell-off isn’t limited to cryptocurrencies—the entire global risk asset landscape is under the shadow of systematic liquidation.
Market Overview
Global financial markets are experiencing a rare, broad-based sell-off. From New York to Tokyo, and across asset classes from cryptocurrencies to traditional precious metals, risk assets are facing widespread declines. This synchronized drop highlights a key reality: correlations between different asset classes tend to surge during periods of market panic.
On February 5, the Nasdaq Composite Index fell 1.59% to close at 22,540.59, marking its worst three-day losing streak since April of the previous year. Meanwhile, the Nikkei 225 retreated below 53,000, dropping 1.57% on the day, and the Korea KOSPI 200 futures even triggered a program trading halt after a 5% decline.
The deterioration in market sentiment extends beyond equities and crypto. Even precious metals, traditionally seen as safe havens, suffered sharp losses. Gold prices fell 1.89% to $4,831.79 per ounce, while silver plummeted an astonishing 14.30% to $72.59 per ounce. This pattern breaks with conventional safe-haven logic, suggesting the market may be undergoing a liquidity crunch—institutional investors are forced to liquidate any assets that can be sold to cover losses elsewhere.
Bitcoin and Crypto Market Turbulence
Bitcoin has proven especially vulnerable during this market turmoil. On February 6, the price of Bitcoin hit a low of $59,980.6, with a maximum 24-hour drop of 9.74%. This marks the first time since November 2024 that Bitcoin has not only breached the $70,000 level but has also fallen into the $60,000 zone.
According to Gate market data, Bitcoin’s current price is $65,057.1, with a market capitalization of approximately $1.56 trillion and a market dominance of 56.80%. Over the past 24 hours, Bitcoin’s price has changed by -10.34%, and it is down 11.16% over the past seven days.
Deutsche Bank analyst Marion Laboure believes that this persistent sell-off signals waning interest from traditional investors, with overall sentiment toward crypto assets turning increasingly bearish. CoinShares Head of Research James Butterfill notes that $70,000 has become a "key psychological level" for Bitcoin. If this level is decisively breached, prices are likely to fall further into the $60,000–$65,000 range.
Ethereum is also under significant pressure, with its price briefly dropping below $1,800 before rebounding to around $1,917.3. Gate data shows Ethereum’s 24-hour trading volume at $971.62 million, with a market cap of $25.32 billion and a market share of 10.01%.
Precious Metals and Traditional Market Linkage
A notable feature of this sell-off is that even traditional safe-haven assets have not been spared. Gold prices declined 1.89% to $4,831.79 per ounce, while silver saw an even steeper drop of 14.30% to $72.59 per ounce.
Several factors help explain this unusual phenomenon. First, the CME Group raised the initial margin requirement for its COMEX 100 gold futures from 8% to 9%, and for COMEX 5000 silver futures from 15% to 18%. Higher margin requirements increase the cost and barrier to holding these assets, prompting investors to reduce their positions.
Second, easing geopolitical tensions—such as the US and Iran agreeing to hold talks in Oman—have reduced short-term demand for safe-haven assets. Additionally, a rebound in the US dollar and Treasury yields has put further pressure on dollar-denominated precious metals.
It’s also worth noting that precious metal-backed tokens have fallen in tandem. Silver tokens (XAGUSDT) dropped 11.15% to $72.63, and gold tokens (XAUTUSDT) fell 2.36% to $4,780.4. This indicates that both physical and tokenized precious metals are facing similar selling pressure in the current market environment.
Institutional Perspectives and Market Outlook
In response to current market conditions, institutions have offered a range of analyses and outlooks. Bernstein’s latest report suggests that the crypto market may still be in a short-term bear cycle, but expects this trend to reverse within 2026—most likely in the first half of the year. The firm believes Bitcoin prices could bottom near the previous cycle’s peak (around the $60,000 range), laying the foundation for a higher price base.
Tom Lee, co-founder of Fundstrat Global Advisors, remains broadly optimistic about cryptocurrencies. He argues that despite short-term declines (such as speculative capital shifting to precious metals), the long-term bull market is still in its early stages. However, he also acknowledges that crypto is currently in a bear phase and under significant short-term pressure. Lee predicts that ETH could rebound after finding a bottom, and if the ETH/BTC ratio returns to historical highs, the price of Ethereum could reach around $12,000.
Some technical analysts are focusing on key price levels. For Ethereum, Brave New Coin analysis points to the $2,200–$2,000 range as a major weekly demand zone that has repeatedly influenced trend direction since 2023. If Ethereum continues to fall below this area, it could face deeper downside risk, with the $1,800–$1,600 range as the next major demand zone.
Based on Gate’s market data and analysis, the average Bitcoin price prediction for 2026 is $78,559.7, with potential fluctuations between a low of $58,134.17 and a high of $85,630.07. By 2031, Bitcoin’s price could reach $210,873.2, representing a potential return of +108.00% compared to current levels.
For Ethereum, the average price forecast for 2026 is $2,088.27, with a possible range between $1,399.14 and $3,007.1. By 2031, Ethereum’s price could climb to $7,074.38, offering a potential return of +153.00% compared to today.
Trading Tips and Risk Management
Risk management is especially critical during periods of heightened market volatility. Crypto investors should pay close attention to leverage usage and avoid excessive exposure during sharp market swings.
According to Coinglass data, as of February 6, forced liquidations of long and short positions in the crypto market this week have already exceeded $2 billion. This surge in leveraged liquidations is amplifying volatility and creating a negative feedback loop. For those considering entering the market, several key technical levels are worth watching. The $60,000 mark for Bitcoin is now seen as an important psychological support—if breached, the next key range is likely between $58,000 and $60,000. For Ethereum, close attention should be paid to the $2,000–$1,800 support zone.
Diversification is also crucial. In times of increased uncertainty, spreading investments across different asset classes—including both traditional and digital assets—can help reduce overall portfolio volatility. Investors should also monitor macroeconomic data releases, central bank policy shifts, and geopolitical developments, as these factors can all act as catalysts for changes in market sentiment.
The global market’s synchronized turmoil is far from over. After the Korea KOSPI Index dropped more than 5%, regulators halted program trading. Even major tech giants have not been spared—Microsoft shares fell nearly 5%, and Amazon’s stock plunged further after announcing capital expenditure plans far beyond market expectations. In the crypto world, Bitcoin’s decline has closely tracked tech stocks, underscoring its role as a risk asset rather than a safe haven. On-chain data for Ethereum shows that despite falling prices, active loans on the network still exceed $2.8 billion, indicating the ecosystem’s underlying resilience. As this global deleveraging wave gradually subsides, the market will likely reassess the fundamental value of various assets. For investors, the key challenge ahead will be distinguishing which declines are emotion-driven overreactions and which reflect a fundamental revaluation of asset values.
