The cryptocurrency market endured one of its worst weeks. According to CoinGecko, market capitalization has declined by $467.6 billion since January 29. Bitcoin led the sell-off, falling on Tuesday to a 15‑month low of $72,877, its lowest level since November 2024. Year to date in 2026, the price has lost 13%, and it is down 39% from its record high in October 2025, when it traded above $126,000. By Wednesday morning in Asian trading, Bitcoin had partially recovered to $76,200, but market sentiment remained at "extreme fear."
The sell-off undermined BTC's status as a safe‑haven asset. Unlike gold and silver, which found support amid heightened geopolitical tensions between the United States and Iran, cryptocurrencies continued to fall. Investor Michael Burry warned that the episode revealed Bitcoin as a purely speculative instrument, incapable of serving as insurance in periods of uncertainty.
Michael Novogratz, chief executive officer of Galaxy Digital, described the event as a psychological breakdown of the market. "Historically, there’s been a tremendous amount of near-religious belief in holding on to $BTC no matter what. And somehow that virus or that fever broke, and you started seeing some selling," he said. Although the pace of forced selling has slowed, investors in Asia and the United States are taking defensive positions amid fears of further declines.
