Global risk assets sell off: Bitcoin drops below $60,000, silver plunges over 14% in a single day

According to Gate Market Data, Bitcoin’s price briefly dropped to $59,980.6 in the early morning of February 6, 2026, marking the first time since November 2024 that it fell below the critical psychological threshold of $60,000. Meanwhile, the spot silver price plummeted 14.30% in a single day to $72.59 per ounce, hitting a recent low. Not only cryptocurrencies, but the entire global risk asset landscape is shrouded in the shadow of systemic sell-offs.

Market Overview

The global financial markets are experiencing a rare, widespread sell-off. From New York to Tokyo, from cryptocurrencies to traditional precious metals, almost no risk assets are spared. This synchronized decline reveals a fact: correlations between different asset classes significantly increase during market panic.

The Nasdaq Composite Index fell 1.59% on February 5, closing at 22,540.59 points, marking the most severe three-day consecutive decline since April last year. Meanwhile, the Nikkei 225 index dropped below 53,000 points, down 1.57% intraday, and KOSPI 200 futures even triggered a programmed trading halt after a 5% decline.

Market sentiment deterioration is not limited to stocks and cryptocurrencies. Traditional safe-haven assets like precious metals also suffered heavy losses. Gold prices fell 1.89% to $4,831.79 per ounce, while silver’s decline was even more dramatic at 14.30%, closing at $72.59 per ounce. This phenomenon breaks traditional safe-haven logic, indicating that markets may be experiencing liquidity tightening—institutional investors are forced to sell all liquid assets to cover losses elsewhere.

Bitcoin and Crypto Market Turmoil

Bitcoin has been particularly vulnerable during this market turbulence. On February 6, the lowest price touched $59,980.6, with a maximum decline of 9.74% in the past 24 hours. This means Bitcoin, after first falling below $70,000 since November 2024, has further dipped into the $60,000 range.

According to Gate Market Data, Bitcoin’s current price is $65,057.1, with a market cap of approximately $1.56 trillion and a market share of 56.80%. In the past 24 hours, Bitcoin’s price changed by -10.34%, and over the past 7 days, it has fallen by 11.16%.

Deutsche Bank analyst Marion Labre believes this sustained selling indicates waning interest from traditional investors, and overall pessimism toward crypto assets is rising. CoinShares research director James Butterfill states that $70,000 has become a “key psychological threshold” for Bitcoin; once effectively broken, the price is likely to further decline into the $60,000–$65,000 range.

Ethereum is also under immense pressure, briefly dropping below $1,800 before rebounding slightly to around $1,917.3. Gate data shows Ethereum’s 24-hour trading volume is $971.62 million, with a market cap of $25.32 billion, and a market share of 10.01%.

Linkage Between Precious Metals and Traditional Markets

A notable feature of this market sell-off is that traditional safe-haven assets have also not been spared. Gold prices fell 1.89% to $4,831.79 per ounce, while silver experienced an even sharper decline of 14.30% to $72.59 per ounce.

This unusual phenomenon can be explained from several angles: First, the CME raised the initial margin for its COMEX 100 gold futures from 8% to 9%, and for its COMEX 5000 silver futures from 15% to 18%. Increasing margin requirements raise the threshold and cost of holding these assets, prompting investors to reduce positions.

Second, geopolitical tensions have eased; the US and Iran agreed to hold talks in Oman, reducing short-term demand for safe-haven assets. Additionally, the rebound in the US dollar and Treasury yields has also put pressure on dollar-denominated precious metals.

It is worth noting that gold and silver-backed tokens also declined simultaneously. Silver tokens (XAGUSDT) fell 11.15% to $72.63, and gold tokens (XAUTUSDT) dropped 2.36% to $4,780.4. This indicates that both physical and tokenized precious metal assets are facing similar selling pressures in the current market environment.

Institutional Views and Market Outlook

In the face of current market conditions, different institutions have offered varied analyses and outlooks. Bernstein, in its latest report, suggests that the crypto market may still be in a short-term bear cycle but expects this trend to reverse within 2026 (most likely in the first half). The firm believes Bitcoin may bottom near its previous cycle high (around $60,000) and then establish a higher price base.

Fundstrat Global Advisors co-founder Tom Lee remains overall optimistic about cryptocurrencies, believing that despite short-term declines (such as the flow of speculative funds into precious metals), the long-term bull market is still in its early stages. He also admits that the crypto market is currently in a bear phase with severe short-term pressure. Tom Lee predicts ETH may bottom out and rebound; if the ETH/BTC ratio returns to its historical high, Ethereum’s price could reach around $12,000.

Some technical analysts focus on key price levels. For Ethereum, Brave New Coin’s analysis indicates that the $2,200 to $2,000 range is a major weekly demand zone, repeatedly influencing trend direction since 2023. If Ethereum continues to break below this zone, it could face deeper downside risks, with the next major demand area between $1,800 and $1,600.

Based on Gate data and analysis, the average price forecast for Bitcoin in 2026 is $78,559.7, with potential fluctuations between a low of $58,134.17 and a high of $85,630.07. By 2031, Bitcoin could reach $210,873.2, representing a potential return of +108.00% compared to current levels.

Ethereum’s 2026 average price forecast is $2,088.27, with a range between $1,399.14 and $3,007.1. By 2031, Ethereum could be valued at $7,074.38, with a potential return of +153.00%.

Trading Tips and Risk Management

During periods of increased market volatility, risk management becomes especially critical. Crypto investors should pay close attention to leverage use, avoiding overexposure during sharp market swings.

According to Coinglass data, as of February 6, the total forced liquidation of crypto long and short positions this week has exceeded $2 billion, indicating that leverage liquidations are intensifying market volatility and creating a negative feedback loop. For investors considering entering the market, key technical levels include the $60,000 psychological support for Bitcoin; if broken, the next critical zone may be between $58,000 and $60,000. For Ethereum, close monitoring of support levels at $2,000 to $1,800 is advised.

Diversification is also crucial. In times of increased market uncertainty, appropriately spreading investments across different asset classes (including traditional and digital assets) can help reduce overall portfolio volatility. Investors should also stay alert to macroeconomic data releases, central bank policy shifts, and geopolitical developments, as these factors can act as catalysts for shifts in market sentiment.

The global market’s synchronized turbulence has not yet subsided. After the KOSPI index briefly fell over 5%, regulators urgently suspended programmed trading. Major traditional tech giants are also not immune; Microsoft shares fell nearly 5%, and Amazon’s stock further plunged after announcing capital expenditure plans well above market expectations. In the crypto world, Bitcoin’s decline is highly correlated with tech stocks, confirming its role as a risk asset rather than a safe haven. On-chain Ethereum data shows that despite the price drop, active lending on the network remains above $2.8 billion, indicating the underlying ecosystem remains resilient. As this global deleveraging storm gradually subsides, markets may reassess the fundamental value of various assets. For investors, distinguishing between overreactions driven by sentiment and fundamental revaluations will be the key challenge moving forward.