Bitcoin Plunge Below $64K Erases Trump Gains: BTC-USD, ETH-USD, and Market Fallout

Bitcoin fell below $64,000 on February 04, 2026, for the first time since 2024, wiping all gains accrued after President Trump’s election victory. The plunge, part of a broader sell-off in crypto and tech, erased about $2 trillion in market value and reignited debate on crypto’s resilience. Prices dropped nearly 13% on Thursday as leveraged traders liquidated positions amid broader de-risking; Ether led the decline. The downturn has erased about half of Bitcoin’s value since its late-2025 all-time high. Liquidations surpassed $1 billion in Bitcoin, and outflows from U.S. spot Bitcoin funds have increased as investors shift toward traditional assets, reducing liquidity. The sell-off, now in full “crypto winter” mode, is expected to test $56,000, per IG analysts, with Strategy Corp facing an existential crisis if prices dip below $60,000. Strategy reported a $12.4 billion loss in Q4 2025 as its stock slumped; Gemini announced layoffs amid an 80% slide in share price since listing. Prediction markets show rising odds of Bitcoin testing much lower levels this year.