Over the past week, Bitcoin faced heavy selling, and according to data, roughly $1 trillion has exited the crypto market since mid-January. In a CryptoQuant Quicktake, analyst CryptoOnchain reported Bitcoin's Taker Buy Ratio (14-day MA) on Binance fell to 0.48, the lowest since October 2025; the slide aligned with a drop to about $61,000 before BTC rebounded above $70,000 on Friday to roughly $70,263, up over 11% in 24 hours.

On February 7, 2026, gold traded around $4,966 while Bitcoin hovered just below $70,000. The two assets have shown low correlation since 2019, and major gold rallies have often preceded Bitcoin advances. GLD holdings rose to roughly 34.9 million troy ounces alongside strong precious‑metal ETF inflows in January.

Crypto analyst Tony Severino argues that Bitcoin may have formed not just a yearly high but a 16-year cyclical peak, as BTC recently plunged to 60,000 dollars before rebounding toward 70,000 dollars. He points to bearish signals on the long-term chart, while other market figures debate whether the move signals a deeper bear market or a temporary shakeout. At the same time, Arthur Hayes links the sharp drop to BlackRock’s IBIT ETF hedging activity, and some researchers suggest the 60,000 dollar area could again serve as a long-term support zone.

Bitcoin’s mining difficulty declined by about 11.16% at block 935,429, marking the largest single adjustment drop since China’s crypto mining crackdown in 2021. Difficulty currently stands near 125.86 T and is projected to fall again on February 23 to around 112.7 T, alongside a hashrate pullback linked to a broad market downturn and weather-related shutdowns of U.S. miners.

On 7 February 2026, the U.S. government's Bitcoin reserve posted paper losses approaching $5 billion since its launch last year as Bitcoin fell roughly 45% from its peak, per Walter Bloomberg. The SEC chair said on CNBC that a market-structure bill is close to passage, while Vietnam's finance ministry proposed a 0.1% tax on crypto transfers.

Bitcoin has fallen back below $70,000 after a sharp move between $60,000 and $72,000 earlier in the week. Analysts highlight $65,000 as a key support area, warning that a breakdown could open the way toward the $55,700–$58,200 range as forced liquidations and negative ETF flows weigh on the market.

Analysts note that Bitcoin has fallen roughly 52% from its recent 2025 all-time high, a scale of correction they say resembles prior mid-cycle pullbacks rather than a full trend reversal. Some traders are watching a Daily Fair Value Gap above current prices as a potential target for a relief rally, while others still see downside risk toward zones such as $34,000. Volatility remains elevated, and market participants are closely tracking how price behaves in key liquidity areas before a clearer direction emerges.

Bitcoin's supply cap of 21 million contrasts with a much larger synthetic market where leveraged derivatives on venues like Binance dominate short-term price action. Recent data shows perpetual futures volumes exceeding spot by ratios above 6:1, rising exchange reserves, and choppy US spot Bitcoin ETF flows, helping explain why prices fell even as spot bids and some ETF inflows increased.