Bitcoin's Worst Week Since FTX: From $78K to $60K in 5 Days

Bitcoin has just endured its most brutal five-day stretch since the FTX collapse in November 2022, plummeting from $78,000 on Monday morning to a low of $60,033 early Friday in Asian trading—a catastrophic 23% weekly decline that wiped nearly $500 billion from the cryptocurrency market and sent the Fear & Greed Index to levels not seen since the COVID crash of March 2020.

The week's carnage has obliterated the narrative that Bitcoin had entered a new "supercycle" regime and marks a decisive turning point in what was supposed to be a pro-crypto era under the Trump administration. Instead, institutional investors are fleeing, ETF holders are underwater, and the market has entered what appears to be a traditional crypto winter complete with cascading liquidations, technical breakdowns, and pervasive fear.

Here's how it all unraveled, day by painful day.

Monday, February 3: The $73K Break

Low: $72,884 | Daily Change: -6%

The week began ominously as Bitcoin crashed through the psychologically important $73,000 level, hitting an intraday low of $72,884—the lowest price since November 6, 2024, when Bitcoin traded at $68,898 following Trump's election victory. The breakdown erased all gains accumulated since the election and served as the first clear signal that the post-election rally had completely reversed.

The $73,000 level had significance beyond mere psychology. It represented the March 2024 all-time high that Bitcoin had only recently reclaimed, and its loss suggested a complete failure of that support. Trading volume surged as stop-loss orders triggered and leveraged longs were forced to close positions.

Strategy shares fell more than 4% as the Bitcoin treasury company watched its holdings decline in value. The breakdown set the stage for an even more violent week ahead, though few anticipated just how bad things would get.

Tuesday, February 4: Failed Recovery Attempt

Low: ~$73,000 | Daily Change: Modest recovery to $76,350

Tuesday brought a brief moment of hope as Bitcoin attempted to stabilize and recover some of Monday's losses, climbing back toward $76,350. The bounce was short-lived and unconvincing, characterized by low volume and weak momentum that suggested exhausted buyers rather than renewed conviction.

Analysts began highlighting the zone between $70,000 and $80,000 as an "air pocket" with little structural support—a prescient observation that would prove devastatingly accurate over the coming days. Compass Point analysts published research noting that Bitcoin's likely bottom sat between $60,000 and $68,000, where 7% of long-term holder supply had been acquired and where strong support could materialize.

The recovery attempt failed to gain traction as selling pressure remained persistent. Institutional outflows from Bitcoin ETFs continued, with more than $500 million exiting the products as holders faced mounting losses with average purchase prices around $90,000.

Wednesday, February 5: Breaking $70K and Extreme Fear

Low: $69,101 (Bitstamp) / $70,002 (Coinbase) | Daily Change: -7%

Wednesday marked the psychological breaking point as Bitcoin crashed below $70,000 for the first time since November 2024. The low on Bitstamp hit $69,101 during Asian trading hours, while Coinbase recorded $70,002—a spread that indicated particularly heavy selling pressure on the Robinhood-owned exchange.

The breakdown triggered a sharp acceleration in the Fear & Greed Index, which plunged to 12—firmly in "extreme fear" territory and the lowest reading in over a month. Historical patterns suggested that such extreme fear often precedes significant rallies, but this time the fear would deepen further before any relief materialized.

As Bitcoin fell below $70,000, Michael Novogratz of Galaxy Digital offered words of caution mixed with contrarian opportunity: "When things feel worse, it is time to be very focused and potentially accumulate. Often when the tide turns, it turns quick." His comments reflected the divided sentiment in the market—some saw capitulation and opportunity, while others feared the floor was falling out entirely.

The $70,000 break represented more than technical failure. It confirmed the Compass Point analysts' warning about the "air pocket" and opened the door to their predicted $60,000-$68,000 support zone. What few expected was how quickly Bitcoin would test those levels.

Thursday, February 6: The $60K Crash

Low: $60,033 | Daily Change: -13% (largest since FTX)

Thursday brought absolute carnage. Bitcoin crashed 13% in its worst single-day performance since the FTX collapse in November 2022, plunging to $60,033 during overnight Asian trading. The collapse represented a 50% decline from Bitcoin's October 2025 all-time high of approximately $126,000 and officially ended any remaining hopes for a "supercycle" that would avoid traditional bear market drawdowns.

The day's destruction extended far beyond Bitcoin. Ethereum crashed below $2,000 for the first time in months, Solana fell below $80, and virtually every altcoin suffered double-digit percentage losses. The total crypto market capitalization shed $350 billion in a single day, with cumulative 22-day losses exceeding $900 billion.

Liquidations reached $2.6 billion as leveraged positions across the market were forcibly closed. More than $2.1 billion came from long positions that had bet on higher prices, wiping out traders who had positioned for a bounce that never came. The cascade of liquidations created a self-reinforcing downward spiral as each wave of forced selling triggered the next.

The Fear & Greed Index plummeted to 4—matching the extreme terror last seen during the March 2020 COVID crash. At that level, panic had reached historic proportions, with virtually all hope drained from the market.

Institutional selling accelerated as U.S. spot Bitcoin ETFs, which had purchased 46,000 Bitcoin during the comparable period last year, became net sellers for 2026. From November 2025 through January 2026, the ETF complex shed $6.2 billion in capital—the longest sustained outflow streak since these products launched. More than 50% of ETF holders were now underwater, with average purchase prices around $90,000.

Strategy's troubles deepened as its stock crashed 17% and Bitcoin fell below the company's average purchase price of $76,000 for the first time. CEO Phong Le attempted to reassure investors by noting the company could withstand Bitcoin falling to $8,000 for years before facing true balance sheet stress, but the comments did little to stem selling pressure in MSTR shares.

Friday, February 7: Volatile Bounce

Low: $60,033 (early morning) | Recovery: $67,000-$69,000 | Weekly Change: -23%

Friday brought volatile price action as Bitcoin bounced sharply from the overnight low of $60,033, recovering to trade in the $67,000-$69,000 range by midday European time. The 10%+ intraday swing represented classic capitulation dynamics—a violent selloff followed by an equally violent short squeeze as over-positioned bears were forced to cover.

The bounce did little to repair the technical damage or restore confidence. Bitcoin remained more than 40% below its all-time high, had broken decisively below all major moving averages, and showed no clear signs of sustainable buying support. The 200-day moving average, currently around $58,000-$60,000, emerged as the next key technical level to watch.

Despite the Friday recovery, Bitcoin finished the week down approximately 23%—its worst weekly performance since the FTX collapse and one of the sharpest declines in its history outside of major black swan events. The week's low of $60,033 placed Bitcoin squarely in the middle of Compass Point's predicted $60,000-$68,000 support zone, validating their analysis but raising questions about whether that support would hold.

The Damage Done

The week's destruction extended across every corner of the crypto market:

Bitcoin Performance:

Weekly low: $60,033 (23% decline)
From ATH: -50% ($126,000 → $60,033)
Below 365-day MA: First time since March 2022
Technical breakdown: All major MAs broken

Altcoin Carnage:

Ethereum: Below $2,000 (-33% weekly, -60% from ATH)
Solana: Below $80 (-40% weekly, -70% from ATH)
XRP: -60% from all-time high
Virtually all major tokens: -30% to -50% weekly

Market Metrics:

Total market cap lost: $500 billion (weekly)
Cumulative 22-day losses: $900 billion+
Liquidations: $2.6 billion (Thursday alone)
Fear & Greed Index: 4 (lowest since COVID crash)

Institutional Exodus:

ETF outflows: $6.2 billion since November
Average ETF price: $90,000 (50%+ underwater)
Strategy stock: -17% Thursday, now below $76K avg
U.S. ETFs: Net sellers in 2026 (vs. 46,000 BTC bought in 2025)

What Comes Next

Bitcoin heads into the weekend having validated Compass Point's predicted $60,000-$68,000 support zone but facing enormous uncertainty about whether that support will hold. Several factors will determine the path forward:

Bearish Case:

Weekend liquidity typically thin, vulnerable to further drops
No clear buying support until $55,000-$58,000 (200-day MA)
Institutional selling continues, no signs of reversal
Technical indicators remain deeply bearish
Some analysts eye $50,000 or even $40,000 as next targets

Bullish Case:

Fear Index at 4 suggests extreme capitulation
Historical pattern: rallies begin from extreme fear
Short squeeze potential after heavy positioning
Long-term holders may defend $60,000-$65,000 zone
Oversold conditions across all timeframes

Key Levels to Watch:

Resistance: $70,000, then $75,000-$78,000
Support: $60,000-$65,000 (current zone)
Critical support: $55,000-$58,000 (200-day MA)
Danger zone: Below $55,000 opens door to $50,000 or lower

The market has entered a critical phase where the decisions made by long-term holders, institutional investors, and algorithmic traders over the coming days and weeks will determine whether Bitcoin has found a bottom or merely a waystation on the path to even lower prices.

One thing is certain: the "supercycle" narrative is dead, the Trump bump has been completely erased, and crypto has entered what appears to be a traditional bear market complete with all the hallmarks of past downturns. Whether this marks the final capitulation or merely the first leg of a deeper decline will be the defining question for 2026.

Data Sources: Bloomberg, CNBC, CoinDesk, Bitstamp, CoinGecko, Compass Point, CryptoQuant