Bitcoin Stabilizes at $78,800 Amid Sell-Off Debate Over Store-of-Value Thesis

Bitcoin rebounded 3.8% to $78,800 on February 3, 2026, after a sharp sell-off that left it down 13.6% over the past 30 days. Analysts remain divided on whether the drawdown reflects short-term liquidity stress or a deeper challenge to its store-of-value narrative, particularly as capital rotated into silver—a trend now potentially reversing as silver cools. FalconX strategist Martin Gaspar noted policy catalysts like the U.S. crypto market structure bill and institutional moves—such as Binance’s planned $1 billion Bitcoin purchase from its SAFU fund and Tether’s gold acquisitions—could shape near-term price action. While firms like Zerocap maintain a long-term bullish view, Galaxy Digital’s Alex Thorn warned of weak accumulation by whales and abating long-term holder activity. On-chain data shows over 22% of BTC supply is underwater, amplifying downside risks, though the absence of panic selling offers a potential silver lining.