Bitcoin Crashes to $65K as Crypto Market Erases $2T in Market Cap Since October Record High

The Bitcoin price has further extended its decline on the day, falling to a new yearly high of $65,000 as bear market jitters continue to set in. Amid this Bitcoin crash, the crypto market has now erased over $ trillion from its market cap since it hit a record high above $4 trillion in October 2025.

Bitcoin Crash Extends as BTC Drops To $65,000

TradingView data shows that the leading crypto by market cap has now crashed to $65,000, down over 10% from an intraday high of around $72,000. This comes amid bear market fears, with BTC now down over 23% year-to-date (YTD).

The crypto market crash has also led to over $1.4 billion in liquidations over the last 24 hours, according to CoinGlass data. Long positions account for most of these liquidations, with $1.23 billion in longs wiped out, while $201 million in liquidations were short positions.

Experts predict that this Bitcoin crash could further extend, with price targets of as low as $38,000. Investment bank Stifel predicts that BTC could drop to $38,000 based on past cycle trends, and macro factors such as the Fed’s hawkish pivot, slowing crypto regulation, and shrinking liquidity.

Veteran trader Peter Brandt also predicted that the leading crypto could drop to $63,000 next, while setting a longer-term target of $54,000 for how low BTC could drop. However, JPMorgan analysts have suggested buying Bitcoin over gold as a better long-term investment. These analysts still predict that BTC could rally above $200,000 at some point.

Crypto Market Erases Over $2 Trillion In Market Value

The crypto market has erased just over $2 trillion in market value since rallying to a record high of $4.3 trillion on October 6, 2025, amid the Bitcoin crash. Notably, that was when the BTC price rallied to its current all-time high (ATH) of $126,000, which likely marked the top of the bull market.

This is absolutely insane:

On October 6th, crypto markets hit a record high market cap of $4.3 trillion.

Today, the crypto market is worth just $2.3 trillion, losing -$2 TRILLION worth of market cap in 4 months.

In other words, ~46% of crypto’s entire value has been wiped out… https://t.co/M7q4bIZLaC pic.twitter.com/IZ2V10sMBz

— The Kobeissi Letter (@KobeissiLetter) February 5, 2026

October 2025 was also when the crypto market saw $19 billion in liquidations, the largest ever, during the infamous October 10 crash. BTC has also lost all the gains that it recorded since the U.S. President Donald Trump won the elections in November 2024.

Meanwhile, top investors such as Michael Saylor’s Strategy and Tom Lee’s BitMine are now facing huge losses due to the crypto market crash. Strategy is currently sitting on an unrealized loss of almost $6 billion following the Bitcoin crash to $67,000. BitMine has an unrealized loss of $8 billion on its ETH position as Ethereum is trading below $2,000.