Bitcoin slid over 12% to trade below $43,000 on February 5, 2026, marking one of its steepest daily drops in six months. Despite the sharp correction, JPMorgan reiterated its long-term conviction that Bitcoin will outperform gold as a store of value, citing structural advantages in scarcity and adoption.
- Bitcoin fell 12.3% on February 5, 2026, breaching $43,000 to settle at $42,800
- Daily trading volume surpassed $38 billion, signaling strong liquidation pressure
- JPMorgan maintains long-term view that Bitcoin will outperform gold in store-of-value role
- BTC/USD’s market cap dropped over $120 billion in 24 hours
- Ethereum declined 9.4% to $2,310, holding above key technical support
- JPMorgan projects Bitcoin could capture 5% of global reserves by 2035
Bitcoin reversed course sharply on February 5, 2026, falling more than 12% to settle near $42,800, its lowest level since August 2025. The sell-off followed a wave of margin calls triggered by a 3% uptick in U.S. Treasury yields, which pressured risk assets across markets. The BTC/USD pair recorded a daily volume spike exceeding $38 billion, reflecting heightened volatility and rapid liquidations. The correction comes amid renewed institutional scrutiny of digital assets, with the S&P 500 dropping 1.6% on the same day. Analysts note that Bitcoin’s recent rally to $48,900 in early January had outpaced expectations, leading to a short-term overextension. The drop wiped out over $120 billion in market capitalization in less than 24 hours. Despite the near-term turbulence, JPMorgan’s research team maintained a long-term bullish view on Bitcoin relative to gold. Their latest analysis suggests that Bitcoin’s fixed supply of 21 million coins and growing institutional adoption position it as a superior hedge against monetary debasement. The bank projects that Bitcoin could capture 5% of global reserve assets by 2035, compared to gold’s projected 3.8%, assuming current trends persist. The ETH/USD pair also declined, shedding 9.4% to $2,310, although it has held above its 200-day moving average. Market participants are now monitoring Fed policy signals and macroeconomic data for direction, with the next FOMC meeting scheduled for March 20, 2026. The divergence between short-term risk aversion and long-term structural optimism underscores a growing bifurcation in investor sentiment.