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Alternative Market Briefing

Broad-Based Sell-Off: Is Crypto Winter making a comeback?

Friday, February 06, 2026

Matthias Knab, Opalesque:

Linh Tran, Market Analyst at XS.com, has shared the following analysis:

The consecutive decline in Bitcoin, with prices retreating toward the 60,000 USD level, alongside Ethereum falling back to around 1,750 USD, is no longer merely a technical correction following a strong rally. Current developments increasingly suggest that a crypto winter may be returning, as the entire market enters a phase of systemic and broad-based sell-offs.

What stands out in this downturn is not Bitcoin alone, but the synchronized weakness across the entire crypto market. Compared with its all-time high near 125,860 USD, Bitcoin has now fallen by more than 50%, indicating that the scale of the correction is no longer isolated. Across the broader market, major platform tokens have also recorded sharp declines: Ethereum has dropped by around 45% from its peak near 4,960 USD, while BNB has lost more than 50% of its value from its high close to 1,375 USD. Selling pressure spreading from large-cap assets to altcoins reflects an active withdrawal of capital from high-risk assets rather than selective portfolio rebalancing. This is a common feature of "crypto winter" phases, when short-term confidence deteriorates and investors prioritize capital preservation over profit-seeking.

Another concerning signal reinforcing the "crypto winter" scenario is the clear reversal of institutional flows through U.S. spot crypto ETFs, affecting not only Bitcoin but also Ethereum.......................

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