February 6, 2026

 

(INVESTORS HIT THE EXIT BUTTON ON BITCOIN)

 

February 6, 2026

 

Hello everyone

Bitcoin has had a tough week, to say the least.

After it broke down from the bear flag pattern, Bitcoin hit around 60k this morning.  That area is key support and actually just touches the 200-day moving average.  Many analysts are suggesting closing your eyes and buying at these levels.  They could be right.  Bitcoin could have an intermediate rally from these levels before falling again around midyear. 

All the gains sparked by President Trump’s 2024 election win have been wiped out.  There are many who are optimistic about the medium- and long-term outlook; however, some are not so sure.  Some believe we are headed for a long winter before Bitcoin mounts a rally with legs.  Michael Burry has warned that Bitcoin’s dip could create a “death spiral” for companies that have bet big on the currency.  A contributing factor to the huge decline has been the massive withdrawals from institutional ETF’s, according to Investing.com.

After Bitcoin reached a record-high price of $126,198 on October 6, 2025, the momentum has faded as traders have taken profits and pulled back from riskier assets.  But momentum was fading long before October 6 last year.  Gradual lower volume and an RSI divergence just kept showing up.  The chart nearly always tells the story.

The downturn has weighed on the broader cryptocurrency market, reversing much of the post-election momentum.

 

Michael Saylor’s Strategy has taken a huge hit

In trading on Thursday, Strategy stock fell 17% to around $106.99, for its lowest close since May 2024. 

Bitcoin’s plunge in recent months weighed on Strategy’s earnings.  Investors are naturally concerned.  They have legitimate questions over how the company intends to approach the capital raising required to fuel its bitcoin acquisition strategy in the face of difficult market conditions. 

The company, which owns nearly 4% of the total Bitcoins currently in circulation, reported a per-share loss on a generally accepted accounting basis of $42.93 and revenue of $123 million.  While the loss widely missed analyst expectations for a loss of just eight cents a share, revenue beat analyst expectations for $119 million.

Other digital assets and crypto-linked stocks have fallen as well.  Ethereum and XRP traded down 12% and 24%, respectively, by late Thursday afternoon. Coinbase Global shares tumbled 13% to around $147 a share, and Robinhood Markets traded 10% lower.

 

SOMETHING TO THINK ABOUT

If you’d invested $10,000 into Bitcoin in 2012, you would have over 71 million today. 

Not bad!

 

 

 

Cheers

Jacquie