Bitcoin Faces Unprecedented $10K Drop Amid Bear Market Predictions
By John Nada·Feb 6, 2026·2 min read
Bitcoin has seen a record $10K drop, liquidating $2.6 billion as market conditions worsen. Predictions indicate recovery may not happen until 2028.
Bitcoin (BTC) has made history with a staggering $10,000 drop in a single day, marking its first-ever red daily candle of that magnitude. As BTC price action plummeted, liquidations reached $2.6 billion, a record that eclipses the impacts of previous market crises like the COVID-19 crash and the FTX collapse. Data from TradingView indicated that BTC/USD struggled to maintain above $60,000 for the first time since October 2024, consolidating around $59,930 after a severe sell-off sparked by sustained pressure during Thursday's US trading session.
Market analysts noted that the liquidation tally not only surpassed the COVID-19 crash, which saw $1.2 billion in liquidations, but also the FTX crash that led to $1.5 billion wiped from the market. On Thursday alone, $1.7 billion was liquidated, highlighting the severity of the current downturn. According to Cointelegraph, this dramatic shift in Bitcoin's value is reminiscent of past bear markets, with Thursday's decline being the largest daily percentage drop since the FTX incident, which previously marked the bear-market low of $15,600.
The sell-off also triggered significant outflows from US spot Bitcoin exchange-traded funds (ETFs), with institutional investors experiencing net outflows of $434 million on Thursday, according to data from UK-based investment firm Farside Investors. This suggests that even institutional players are not insulated from the turmoil affecting the broader crypto market.
Crypto trader and analyst Rekt Capital provided a grim outlook, predicting it may take until 2028 for Bitcoin to break above $93,500 again. Rekt Capital pointed to the current market conditions, suggesting that 2026 is likely to be a classic bear market year for Bitcoin, with 2027 serving as the bottoming out year.
The current sell-off reflects a broader bearish trend that could redefine market expectations for Bitcoin in the coming years. As traders and investors navigate this tumultuous landscape, understanding the potential for recovery—or lack thereof—will be crucial in their decision-making processes.
In this environment, market participants must remain vigilant and adapt to the shifting dynamics of the crypto space. The news serves as a stark reminder of the volatility inherent in cryptocurrency investments, underscoring the importance of conducting thorough research and maintaining a cautious approach amidst the uncertainty.