Bitcoin Loses Half Of It's Value

Thursday, February 05, 2026

Bitcoin is acting weird. The world's most famous cryptocurrency has now lost half its value from its October peak, falling below $63,000 Thursday for the first time in 16 months. That decline is actually not unusual at all. Crypto is notoriously volatile, and it's gone through numerous crashes that are bigger than this one. What's strange is this: Bitcoin's four-month slump has come at a time when, in theory, it had everything going for it. Crypto bulls have long advocated that investors treat bitcoin as "digital gold," a new safe haven investment where traders can store funds when times are tough. So now would be a logical time for a safe haven to surge.

Posted by LegallyYourDead at 08:40 PM | 7 COMMENTS | permalink | Comment on This Entry |

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Yeah.

The question I'm hearing is along the lines of ... has the dump of Bitcoin just begun, or is it over?

Currently, I'm leaning towards the former.

#1 | Posted by LampLighter at 2026-02-05 08:43 PM | Reply

One view ...

Michael Burry Warns of Cascading Effects From Bitcoin Plunge
finance.yahoo.com

... Michael Burry, who rose to prominence for his wager against the US housing market ahead of the 2008 financial crisis, warned that Bitcoin's plunge could deepen into a self-reinforcing "death spiral," inflicting lasting damage on companies that have spent the past year stockpiling the token.

In a Substack post Monday, Burry argued that the original cryptocurrency, which has fallen 40% since peaking in October, has been exposed as a purely speculative asset, failing to take off as a debasement hedge similar to precious metals. Further losses, he said, could rapidly strain the balance sheets of major holders, force selling across the crypto ecosystem and trigger widespread value destruction. ...

#2 | Posted by LampLighter at 2026-02-05 08:48 PM | Reply

"So now would be a logical time for a safe haven to surge.

Geopolitics have gotten spicy this year:

President Donald Trump is threatening to attack Iran after the United States removed the leader of Venezuela.

The US president has recently been going after allies in Europe and Canada over Greenland, and he's threatening higher tariffs on South Korea."

Good article.

;;

Uncle Scrooge Donald is manipulating the market as well as he can to enrich the Trump Crime Family.

But... he's terribly erratic and incredibly incompetent (and incontinent!), so he could lose it all like it was several casinos.

#3 | Posted by Corky at 2026-02-05 08:51 PM | Reply

""So now would be a logical time for a safe haven to surge."

How is bitcoin a safe haven when it requires the internet to work, and it doesn't even have residual industrial or clear aesthetic value, like gold?

Pssst. wanna buy some prime numbers?

#4 | Posted by snoofy at 2026-02-05 09:09 PM | Reply

Bitcoin Loses Half Of It's Value

It's because of risks like these that I invested my money in tulip bulbs.

Tulip mania was a period during the Dutch Golden Age when contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. The major acceleration started in 1634 and then dramatically collapsed in February 1637. It is generally considered to have been the first recorded speculative bubble or asset bubble in history. The term tulip mania is now often used metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values.
en.wikipedia.org

#5 | Posted by censored at 2026-02-05 09:29 PM | Reply

Comrade Boazo just lost the doublewide because of this.

#6 | Posted by a_monson at 2026-02-06 12:50 AM | Reply

How is bitcoin a safe haven when it requires the internet to work, and it doesn't even have residual industrial or clear aesthetic value, like gold?
- snoofy

The aesthetic value doesn't match the financial value.

Some one mentioned this interesting idea, that New York financial wizards capture and destroy the "value" of everything through fractional ownership.

Across all financial commodities we aren't paying the for the value of the commodity, just it's manipulation.

Housing, Gold, silver all suffer from fractional ownership through derivatives.

Bitcoin at one time had scarcity, but no longer, now it's all EFT, derivatives so now the price floats irrespective of the "asset".

No price is real.

Thought it an interesting idea

#7 | Posted by oneironaut at 2026-02-06 01:08 AM | Reply