Bitcoin Plunges 14% as Crypto Bear Market Looms, Prices Down 50% from Oct 2025 High

Bitcoin plunged 14% in a single day from February 4–5, 2026, the steepest one-day drop since November 9, 2022, according to CoinGlass. Prices extended a 50% drawdown from the October 2025 all-time high of $126,080, reaching as low as $60,255 and briefly hitting $64,400 by Thursday evening. Over 24 hours, more than $1.4 billion in liquidations occurred. A bear market is typically defined as a 20% or greater decline from a recent peak over an extended period. Bitcoin’s selloff meets this definition, with analysts citing macroeconomic weakness, leverage unwinds, and capitulation from miners and corporate treasuries as key drivers. If the decline accelerates, $38,000 is cited as a potential support level. Despite the bear market, some researchers expect a short-term technical rebound as liquidity may flow back into equities or commodities. The broader tech and software sector’s influence on global liquidity continues to shape crypto price direction.